Apple debuts OS X 10.10. Apple

An analyst said Wednesday that Apple Inc. (NASDAQ:AAPL) could release a cheaper iMac and a new iPhone 5s model with 8GB storage capacity at the Worldwide Developers Conference, or WWDC, next week in San Francisco.

According to Ming-Chi Kuo of KGI Securities, the new and cheaper iMac and iPhone 5s models could be unveiled on the first day of this year’s WWDC on Monday. The analyst also expects Apple to debut the company’s iOS 8 and OS X 10.10, along with new hardware.

Kuo said that Apple would cut iMac production costs by improving panel lamination and casing yields while adding parts-bin components being used in the MacBook lineup, AppleInsider reported. Although a cheaper price tag is expected to boost sales, Kuo revised his iMac shipment forecast for 2014 to between 4 million and 4.5 million from 4.8 million units, citing low desktop sales.

Meanwhile, references to unknown iMac identifiers were also discovered in code from the latest OS X 10.9.4 beta on Wednesday, suggesting that a new iMac could be on its way.

For the cheaper 8GB iPhone 5s, Apple is expected to manage a price cut by decreasing internal storage. Being a minor update, Apple may even consider holding off on the announcement for now, according to Kuo, who believes that a cheaper iPhone 5s could help the iPhone gain traction in emerging markets.

According to a report from 9to5mac, the timing of an announcement of the 8GB iPhone 5s appears to be unusual as Apple is widely expected to release the iPhone 6 this fall. However, the report is also counting on the possibility that the iPhone 5s could be made available solely in an 8GB version, which could offer the device some momentum until the new iPhone enters the market.

However, Jim Dalrymple of The Loop, who is known for his contacts inside Apple, contradicted Kuo’s predictions, stating “nope,” in a customary one-word verdict about the possibility of the launch of a cheaper iMac and 8GB iPhone 5s at WWDC.