TAIPEI • Apple suppliers plan to begin assembling a new low-cost iPhone next month, people familiar with the matter said, as the company looks to address a wider swath of the global smartphone market ahead of its 5G handsets later this year.

Apple is expected to officially unveil the new phone as early as March, one person familiar with its road map said.

The assembly work for the new handset will be split among Hon Hai Precision Industry, Pegatron Corp and Wistron Corp, the people added.

This will be the first lower-cost iPhone model since the iPhone SE. It will look similar to the iPhone 8 from 2017 and include a 4.7-inch screen, Bloomberg News has previously reported.

The iPhone 8 is still on the market, currently selling for US$449 (S$605), whereas Apple sold the iPhone SE for US$399 when that handset launched in 2016.

The new phone is expected to have Touch ID built into the home button, reusing established Apple technology instead of opting for an in-display fingerprint sensor like most modern Android rivals. It will not have Apple's Face ID biometric authentication, but will feature the same processor as Apple's current flagship device, the iPhone 11.

Apple's more affordable iPhones have proven popular with consumers.

A cheaper offering may help Apple better compete in the most price-competitive and fast-growing emerging phone markets, particularly India.

BLOOMBERG