In the past, when anyone has talked about the possibility of a low-cost iPhone aimed at the budget market, most have assumed that Apple would essentially take the iPod touch — currently the cheapest iOS device, after subsidies, which saves on cost in a number of key regards like screen quality, speed, storage and more — and graft some cellular modems onto it. Yet when Apple unveiled the iPhone 5c, what they showed was a smartphone that was essentially an iPhone 5 in a plastic shell. In other words, a last-gen iPhone that was cheaper for Apple to make, but not necessarily to buy.
Yet according to new court documents coming out of the latest Apple vs. Samsung case, such a vision for the ‘cheap’ iPhone was not always meant to be. In fact, Steve Jobs himself believed that the budget iPhone should be based off of the iPod touch.