Tech giant Apple is planning to use an LCD display in the next year’s iPhone SE2 model instead of costly OLED panel introduced in iPhone X, a new leak has revealed.

“Apple will release its biggest iPhone yet with a huge 6.1-inch display and it is likely to be Apple’s cheapest iPhone as well,” said a new report in financial newspaper Nikkei Asian Review.

Apple’s next year iPhone SE2 will come with 6.1-inches of display and will also bring back aluminium chassis meaning no wireless charging support. Nikkei also senses that the new iPhone will be designed by a new manufacturer Casetek, a subsidiary of Pegatron.

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Pegatron currently assembles iPhone and according to a second Nikkei source, the company has been working with casings for new LCD iPhone model. Casetek has produced iPads in the past, but this would be the first time to manufacture iPhone.

If the new arrangement goes through, Apple will reduce its dependence on Taiwan-based Foxconn and South Korean Samsung, which is the only company supplying OLED displays in heavy quantities to meet iPhone X demand.

Apple will also launch ‘iPhone X Plus’ in 2018, and while the actual size is yet to be finalised, Nikkei says it will be either 6.2 or 6.3-inches.

Apple manufactures cheaper iPhone variants for India and other Southeast Asian Markets. The second-generation India made iPhone SE 2 will be manufactured in association with Wistron's (Taiwanese original design manufacturer) facility in Bengaluru. The facility is already manufacturing iPhone SEs.

According to an earlier report by Taiwan's Economic Daily News, the iPhone SE 2 will cost Rs 30,000 and is being targeted at Southeast Asian markets.

With iPhone SE, Apple is considered as the top vendor of premium smaller smartphones, which might make Samsung think to launch a powerful Galaxy S9 Mini.