The low-cost iPhone which could be a variant of the iPhone 5S, or iPhone 6 is rumored to include a Qualcomm Snapdragon S4 processor.

This claim originated from Detwiler Fenton who stated that Apple would use the chip for its ability to integrate Bluetooth and Wi-Fi directly into the main chip. This would save Apple a lot on costs.

China Times is now confirming this by reporting that TSMC has been contacted by Apple to produce the Snapdragon chip using its 28-nanometer process. The report also states that Apple will make the low-cost iPhone 3G only in order to save even more on costs. The Snapdragon chip comes in either 3G or LTE giving Apple the option to choose which one benefits the company the most.

However, MacRumors feels that Apple will probably go with one of its older chips rather than use one made by Qualcomm.

The Japanese blog Macotakara reported last month that the company originally planned to release this low-cost iPhone this year, but decided to push it back. The report also stated that the smartphone will feature a polycarbonate body similar to the older plastic MacBook and its price will be $330 without a contract.

The blog also claims that this new iPhone will have a 4.5-inch display. This is not the first time that has been reported as DigiTimes said last month that the company would launch a low-cost version of the device with a larger display.