Apple's new low-cost iPhone to go into production in February

The new low(er) cost Apple handset is expected to be similar in size and aesthetic to the 4.7-inch iPhone 8

Apple is planning to launch a new low-cost iPhone model that could go into mass production in February.

That's according to Bloomberg, which claims that the Cupertino-based company could name its new handset iPhone SE 2, and could unveil it as early as March.

Apple ' s plan for a new iPhone was first reported by Japanese news outlet Nikkei in September last year. At that time, Nikkei reported that the new handset would share its most components with the current line-up of iPhones and would also feature a cheaper LCD display to keep the price low.

The new iPhone is expected to be similar in size to the 4.7-inch iPhone 8 that Apple launched back in 2017. It may sport the same processor as the iPhone 11, while also having touch ID built into the home button (instead of Face ID), a single-lens rear camera, thick top and bottom bezels, and 3GB RAM.

The assembly work for the new device will be divided among Wistron, Pegatron and Foxconn, according to Bloomberg.

It will be Apple's first iPhone released in 2020. The company is expected to launch additional iPhone models in the second half of the year, equipped with 5G technology, rear 3D cameras, and expensive all-glass designs.

Considering the $399 pricing of the original iPhone SE, Apple may sell the new handset at the same $399 price point, making it the most affordable iPhone on offer.

Apple ' s plan to launch a cheaper iPhone appears to be a strategy to win customers back from Chinese smartphone makers, including Huawei, Oppo, and Xiaomi, especially in emerging markets, such as India.

The majority of customers in the country still prefer affordable Android-based smartphones available at less than $200, but with lots of advanced features.

In the fourth quater of 2019, sales of iPhone handsets fell nearly 10 per cent to about $33 billion. In the previous quarter, the decline was about 12 per cent.

Apple wants to ship more than 200 million units this year, and the new iPhone could play a significant role in hitting that target.