Apple has announced a new cheaper version of the iPhone 5C that will cost just £429. According to unconfirmed reports, falling sales are the reason for the launch of this cut-price iPhone.

The newest version of the iPhone 5C smartphone comes with 8GB of internal storage and will be available to UK consumers through the firm’s online store. It will sit alongside the current 16GB and 32GB models which retail for £469 and £549 respectively. O2 were the first mobile phone network to make the phone available but other providers have already followed suit.

There’s been a lot of speculation as to why Apple have made this move but most commentators believe that Apple have been disappointed with the sales of the iPhone 5C that was first made available in September 2013. Sales figures haven’t been made available but independent surveys carried out in various markets suggest that the more expensive 5S has been a bigger hit with customers. In September, a survey carried out by the Consumer Intelligence Research Partners showed that 64% of those questioned had opted for the 5S. A similar report from analytics firm Umeng showed that the SC is less popular than the 5S in the Chinese market.

Apple’s CEO Tim Cook has admitted to analysts that the numbers they’re seeing aren’t as he forecast: “I think last quarter we did a tremendous job, particularly given the mix was something very different than we thought.”

Apple has never been scared to make changes to keep ahead of the market, so this new entry-level iPhone wouldn’t surprise anyone connected with the firm. At the moment, users can still buy the 8GB iPhone 4S which was launched in October 2011, but perhaps that won’t last much longer now that the iPhone 5C has been made available with 8GB.