Analysts predict that the company will showcase a cheaper iPhone in a bit to increase the company's 11 per cent share of the world smart phone market.

The current iPhone price in the US is $199, and experts are predicting that the new product will cost either $149 or $99, reports the Financial Times.

"It's either a $50 or a $100 cut," Morgan Stanley analyst Kathryn Huberty said.

Apple has so far declined to comment. The keynote speech at the WWDC, delivered by Apple senior vice-president and marketing chief Phil Schiller, is set to take place at 10am (PDT).