Apple will roll out a low-cost version of the iPhone for China and other emerging markets in the second half of 2013, according to supply-chain sources.

Some sources claimed that they have seen the sample of the low-cost iPhone, which will come with a larger display, meeting the prevailing trend for the adoption of 5-inch displays for high-end models. They added that the low-priced iPhone will also have a brand new exterior design.

Growing sales of the iPad mini, particularly in China and other emerging markets, may have served as an impetus for Apple to roll out a low-cost iPhone to repeat its success gained on the sale of the iPad mini, the sources commented.

Qualcomm's recent launch of its latest family of Snapdragon chipsets, including the dual-core MSM8960 and the quad-core APQ8064, for the entry-level to mid-range smartphones may pave the way for Apple bringing out the low-cost iPhone, added the sources.

Other sources also indicated that Apple also plans to cooperate with China Mobile to launch a TD-version of iPhone to ramp its penetration in the China market.