Techdy claim the early prototype is largely made from plastic and 'does not feel cheap'.
They also say the device has a 4inch screen like an iPhone 5 and is shaped like Apple's iPod Touch.
Speculation has been rife about a low cost iPhone after images of its rear shell in white, red, blue, green and yellow emerged last month.
Low cost ... US website Techdy claim the super-cheap phone is made from 'sturdy' plastic
But in a twist, Techdy have created an Android knock-off called the Basic Bear and are selling them in five colours for $199 (£134) each.
Chris Chang, editor of M.I.C. Gadget blog, wrote: "When we hold the budget iPhone in our hands, the plastic chassis does not feel cheap at all.
"Unlike the plastic build quality of the Samsung Galaxy phones, the plastic material used on the budget iPhone feels more sturdy."
The budget handset is likely to launch in the autumn, presumably alongside Apple's flagship iPhone 5S.
Read more: http://www.thesun.co.uk/sol/homepage/news/5000823/Leaked-pics-claim-Apple-is-to-launch-a-super-cheap-iPhone.html#ixzz2YKBon9AL
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