Recent reports suggest that as well as the highly anticipated iPhone 5, Apple also plans to launch a budget version of its current iPhone 4 in China this September.
The report alleged that China Telecom had successfully negotiated a preliminary agreement with Apple to sell the, as yet unconfirmed, handsets by the end of October this year.
Sohu's article claimed that Apple was in the midst of developing two new smartphones.
The first would be the widely speculated high-end iPhone 5, the other a "simplified" version of its current iPhone 4.
The simplified iPhone would allegedly retail at a significantly lower price, attempting to corner the currently Android dominated low-end, pay-as-you-go smartphone market.
The new report isn't the first to allege that Apple are creating two new iPhone devices. Previous reports have alleged that Apple was making moves to conquer the low-end smartphone market, commonly labelling the as yet unconfirmed smartphone the iPhone 4S.
As is the case with all iPhone rumours, Apple declined to comment on the authenticity of Sohu.com's report.