Speculation has continued that Apple is set to offer a new low-cost version of its iPhone, as Bloomberg also revealed that Tim Cook, the vendor’s CEO, had met with the head of China Mobile “for the second time this year”.

The latest speculation on its iPhone plans were sparked – somewhat unusually – by a report into the working practices of Apple’s suppliers in China, by China Labor Watch. Arguing that contract manufacturer Pegatron was responsible for “extensive labour violations and suppressed wages that cheat workers of a living wage, a healthy working environment, and a voice”, it said that staff of the supplier are “monotonously working long overtime hours to turn out a scaled-back, less expensive version of the iPhone”.

The report said that staff undertook work including pasting protective film “on the iPhone’s plastic back cover to prevent it from being scratched on assembly lines… this iPhone model with a plastic cover will soon be released on the market by Apple”. It was noted that the device “has not yet been put into mass production”, and it is indeed possible that it is a prototype run which will not result in commercial releases.

Aside from the possibility of a new iPhone, the China Labor Watch report is damning of the vendor, following previous question marks over the procedures of manufacturer Foxconn. “As Apple launches its cheaper iPhones, it continues to profit while cheapening the value of the workers in its supply chain,” it noted.

Separately, it was suggested that Cook’s return visit to Xi Guohua, chairman of China Mobile, indicates the growing likelihood of a partnership between the companies. So far, Apple has not offered an iPhone which support’s the world’s biggest operator’s 3G (TD-SCDMA) network, although it does offer devices via China Unicom (WCDMA) and China Telecom (CDMA).