Pegatron CEO T.H. Tung recently confirmed at a shareholders meeting that the anticipated low-cost iPhone “won’t be so cheap”. With rumors last week spreading of a $99 budget iPhone arriving this fall, this news all but assures that it was just a rumor and nothing more. Pegatron is said to be the manufacturer for the low-cost iPhone, while Foxconn will continue to build Apple’s premium products. Last May, it was rumored that Pegatron was looking to increase its workforce by 40% (40,000 new jobs), which lends more evidence of the launch of a budget iPhone. The CEO did not confirm the actual price of the rumored device. However, he did state that “the price will be high.” Reports prior to the $99 rumor have pegged the price at around $350-$400. This price looks more targeted at a mid-range devices rather than a true feature phone replacement. The low-cost iPhone is said to be very similar in build and design as the current iPhone 5 but will feature a new polycarbonate backing. Along with the new backing, other changes such as new colors and a toned down 5MP camera are expected. Apple’s low-cost iPhone is expected to launch around the same time as the iPhone 5S, which is rumored to be arriving sometime this fall. The big question is, what device will consumers buy – a new low-cost iPhone, a new iPhone 4S, or a similarly priced Nexus device? With all these coming in at around $300-$400, consumers will have better options in the mid-tier range come this Fall.