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Apple has been dropping even stronger hints about a new smaller and cheaper iPhone model at the next release cycle.

There have been rumours for some time now about Apple releasing a cut-price model aimed at the lower end of the smartphone market. Lots of analysts have noticed that Apple’s rivals such as Samsung are doing so well simply because they have such a vast range of smartphone models available.

No matter what your price range, there’s a Samsung phone to suit every budget. And recently it’s looked more likely that Apple will be moving in this direction as opposed to the current situation where all the iPhones are relatively expensive and are aimed at the more wealthy demographic.

Tim Cook, Apple CEO, recently appeared at the Goldman Sachs Technology and Internet conference. There he strongly hinted at his company offering cheaper iPhones in the near future. He said that when they reduced the price for older iPhone models they were surprised by how quickly the demand increased. He also went on the record claiming that Apple has a history of releasing cheaper products to satisfy demand for those who can’t afford its flagship range. For example, the iPod Shuffle was massively successful in the wave of the iPod Classic and iPod Touch.

But one aspect that Tim Cook did reiterate is that Apple is not interested in making products cheaper for the sake of it. He made it clear that a cheaper iPhone will be designed with the goal of making a great new product rather than just trying to make a cheaper version of the iPhone. Apple won’t try to simply make a cut-price version to fill a gap in the market – they’ll reinvent the device from the ground up in the same fashion as what happened with the iPod Shuffle.

Even so, this is the clearest indication yet (and from the most senior source) that Apple is going to release an iPhone that’s priced much lower than current offerings. It may well also turn out to be smaller as well but it’s not clear yet where Apple will try to cut costs in the design. We should know soon for sure whether or not these rumours turn to have any truth behind them.

What do you think? Will Apple release a cheaper iPhone this year? And would you want to buy one? How much do you think it should cost? Let us know!