Apple’s under fire again for labor abuses by one of its manufacturing partners again, this time Pegatron. Bizarrely, though, the report incriminating them also confirms the plastic “budget” iPhone, the so-called iPhone 5C.

There’s a lot of smoke suggesting a fire coming our way. We’ve seen countless leaks, rumors and reports that say Apple will release a budget iPhone Lite in September: a plastic-bodied mid-range phone which Apple will be able to offer for $0 on contract, making a dent in the mid-range market.

We’re pretty sure the iPhone Lite is a real product at this point. But according to a new report, there might not be just one iPhone Lite. There could be two.

Photos published by TechCrunch this morning reportedly claim to be of the upcoming “iPhone Lite,” with panels made from plastic rather than glass, and a “metal banding around the edge.” However, I’m adamant it’s just a poor quality white iPhone 4 conversion kit. What do you think?