Cheaper iPhone's to combat Android saturation

http://www.theage.com.au/digital-life/mobiles/an-iphone-for-300-apple-working-on-cheaper-smartphone-reports-claim-20130109-2cfon.html

Thoughts?

Let's face; whether you like Android or not there, there are so many phone's out there running one version of the OS or another that it's suffocating and this is a serious problem Apple is going to be facing in 2013. They have to do something to curb the numbers in their favour. What do you Vergers think about the ongoing speculation of a cheaper iPhone offering for the masses? It makes sense and it will make it harder for newcomers like the Ubuntu phone to get off the ground but it would be a departure from hysteria inducing high-quality-work-of-art approach we're used seeing from their products. Do you think they'll go there?