We've probably reached peak iPhone, but Apple is desperate to keep its smartphones selling, so it looks as though we're going to get a new budget offering next year in the form of a revised iPhone 8.

As MacRumors reports, a report coming out of China suggests Apple is set to revise the internals of the iPhone 8 for re-release next year. By doing so, Apple will be able to better compete in the mid-tier smartphone market, especially in China where competition is at its strongest.

The new iPhone 8 is expected to include an A13 processor, 128GB of storage as standard, and a single-lens rear camera. For consumers who don't appreciate the trend of ever-larger phones, you'll be glad to hear this iPhone is expected to retain the 4.7-inch display. As for price, $649 is being suggested, which places it $100 below the base model iPhone XR.

By updating the iPhone 8, Apple can cater to a wider, more budget conscious audience while guaranteeing support for years to come thanks to the updated internals. Official accessories for this phone are likely going to be key to pushing up the profit margins, so if it does appear, expect AirPods, wireless charging, and cases to be pushed hard. We may even get a Smart Battery Case for it.

What's unknown for now is if Apple will revise the iPhone 8 design to remove the bezels around the display. Doing so would make it an even smaller handset without sacrificing display size and could make it a more desirable budget iPhone.