Apple will release less expensive versions of the iPhone, if an unconfirmed report is correct.

This company's first smartphone is set to debut at the end of this month in two versions, one $600 and the other $500 with a two-year contract. Those are high prices even for high-end smartphones, and the consumers Apple is primarily targeting with the iPhone often get their phones for free when signing a contract.

Apple may already be working on new products for those who want some cheaper options. An analyst for American Technology Research, Shaw Wu, said in a recent note that he'd been told by unnamed sources that Apple is developing ?lower cost iPhone prototypes for release at unspecified future dates.?

Wu had no additional details, like what features will be scaled back in order to reach the lower price points.

This wouldn't be out of character for Apple; It's iPod line of digital music players come in a wide range of prices and configurations.