Apple, Inc. (NYSE: AAPL) will discontinue iPhone 5C later this year, according to a report.

Digital Spy reported consumers may have to say goodbye to the less stellar iPhone 5C. The reason behind is because the company will release a new version of iPhone 5S made out of a "cheaper material."

The Cupertino-based company will also launch two models of iPhone 6 this year, one with a 4.7-inch screen and the other featuring a larger 5.5-inch display, according to South China Morning Post.

Other sources claimed they have seen prototype of the new handsets saying it included screens made out of sapphire crystal but some reports noted Apple is replacing sapphire glass with another material due to the former's high cost.

Also, iPhone 5C fell below the expectations of Apple in terms of sales. The low-cost iPhone 5C was introduced and released in September 2013. But reports said the response on the handset in terms of sales was not what Apple was expecting.

Part of iPhone 5C's unpopularity was due to its price. Many people think that the low-cost iPhone 5C did not fall in the category since its price is still pretty steep for a cheap handset. Moreover, there are other cheaper options for the full-fledged iPhone 5S like iPhone 4S and Android smartphones. Apparently, the colorful, plastic casing of the handset did not appeal much to the buyers.

Apple already cut down the production of iPhone 5C due to poor sales late last year. The company also gave deals and discounts on the handset many times despite it was released last September.

Sources said Apple intends to bounce back from defeat next year with the release of iPhone 6. Some of the rumored features of the upcoming iPhone 6 are larger screen display within the range of 4.8- to 6-inches, A8 processor and iOS 8. It may retain some of iPhone 5S' new features like the M7 graphics chip and the fingerprint sensor.

iPhone 6 release date is set to take place at the Worldwide Developers' Conference in June, which is the original launch date of Apple's iPhone. But the handset may also be released in September.