Apple set to unveil iPhone 5 as Tim Cook takes centre stage

Apple is expected to unveil the hotly anticipated iPhone 5 at an event in San Francisco on Tuesday, but may also showcase a pared down iPhone designed to compete with Android devices in the mid-tier smartphone market.

Invitations sent out last week revealed only that Apple will unveil a new device at the event, but analysts have speculated for some months that the company is preparing a lower cost smartphone as well.

Such a model is likely to have reduced functionality and hardware components compared to the normal iPhone, and will sell for $200 to $300.

However, Charles Murray, an analyst at Analysys Mason, told V3 that Apple is unlikely to unveil a low-cost handset at the same time as the iPhone 5, owing to the difficulty of managing so many updates.

"There will be too much going on for Apple with the launch of the new device and the iOS 5 update to start segregating its product line now," he said.

"Apple doesn't usually do cheap either, so it may be that the iPhone 5 marks such a significant step up that the iPhone 4 becomes the low-tier device. This has the benefit of Apple being able to continue to sell the other accessories in the supply chain."

Murray expects the new smartphone to have a larger screen to match some of the high-end devices from the likes of Samsung, as well as near field communication capabilities and possibly improved battery life.

The event will also mark the first time that new chief executive Tim Cook has taken centre stage for an Apple product unveiling, after Steve Jobs stepped down earlier in the year for health reasons.

"There is no doubt there will be a lot of pressure on Tim Cook and how he sells the product, but if the product sells itself he may find it easy enough to just let the product do the talking," Murray said.