This isn’t anything we can confirm, but it seems that some pictures of the supposed iPhone Lite, or the lower-cost iPhone have surfaced.
It’s too difficult to say much about it at this point, because it seems that the handset doesn’t have a home button, giving us reason to be skeptical of the photos. Website AppleInsider says the same.
Also strange is that the handset doesn’t have any outside buttons, such as volume and power.
That said, according to the site, the photos come from Techdy. While the site itself has no real past in reporting leaks, it’s co-founded by Christ Chang of M.I.C. Gadget, which does have a good track record for this sort of thing. For now, let’s just call it a rumor.