Apple iPhone 5 and the Apple iPod touch and the classic Apple iPod. It has a 4 inch screen like the iPhone 5, and even matches the 640 x 1136 resolution of the Retina display on the 6th generation Apple iPhone. The volume buttons on the side are similar to what you see on the Apple iPhone 4, Apple iPhone 4S and Apple iPhone 5 except that they are longer and narrower like on the Apple iPod touch and the iPhone 3G/3GS. The low cost model is believed to be half a millimeter taller and wider than the Apple iPhone 5 while being 1mm thicker. According to iLounge, the budget version of the Apple iPhone "will look a lot like an iPhone 5 from the front, an iPod classic from the side, and an iPod touch 5G on the bottom—only made from plastic rather than glass or metal."
We belong to the "Where there is smoke, there is fire" club and there are just too many rumors and speculation out there for there not to be some semblance of truth to the idea that a low cost version of the iPhone is coming. It won't look as thin as the Apple iPod touch and it will be made of plastic. If earlier speculation pans out, it will be available in various colors. The sad part is that this could be what passes for innovation from Apple these days.
source: iLounge via RedmondPie