There was more speculation about Apple’s iPhone update plans, led by claims that an anticipated “entry-level” device will in fact target the mid-tier, with the iPhone 4S living on as the company’s “budget” option.

Apple Insider reports that Ming-Chi Kuo of KGI Securities had said the anticipated “iPhone 5C” will cost between $400 and $500 without subsidy, meaning that it is hardly cheap. But the iPhone 4S would cost between $300 and $400 unsubsidised, providing a lower-priced alternative, with the aging iPhone 4 finally being phased out.

Previously, it had been suggested a new device would replace the iPhone 4 and iPhone 4S, enabling Apple to shift its whole smartphone range to 4-inch screens and its new Lightning connector – driving commonality of components across the portfolio.

Reflecting this, the iPhone 5C will have the same A6 processor and 4-inch retina display of the current iPhone 5.

Other feature of the iPhone 5C will be plastic back covers rather than the metal used in the flagship, enabling it to be offered in a wider range of colours – including red, yellow, green and blue.

Also apparently in the pipeline is the iPhone 5S, which would be the new flagship iPhone. Suggested features of this include a fingerprint sensor beneath the “home” button as well as a dual-LED flash for better low-light images.

AllThingsD reported that the company will offer a third colour variant alongside its standard black and white – gold. It was suggested that this will be a sober tone rather than a garish one – “think champagne, not ingot” – with white detailing.

It also said that gold is “among the easiest colours to anodise”, meaning that technically it will not be difficult to manufacture – although Apple has struggled with white units in the past.

The Wall Street Journal said that assembler Foxconn is set to ship both models in early September, following component manufacturers mass-producing new iPhone parts from June 2013.