In a move to cut costs, $Apple (AAPL.US)$is said to be developing a new version of its Watch SE, which will feature a plastic casing.

What Happened: In his latest weekly "Power On" newsletter, Bloomberg columnist Mark Gurman reported that Cupertino is creating a new Apple Watch SE model incorporating a sturdy plastic casing instead of anodized aluminum.

"Perhaps it's looking to get the cost down to something that could better rival Samsung's cheapest watch" he stated. The existing Apple Watch SE is priced at $249, while the Galaxy Watch FE, the most affordable competitor from Samsung, is available for $199.

This development comes on the heels of rumors about Apple's 10th-anniversary special edition watch, the Apple Watch X or Series 10. Previously, it was reported that the new model would feature the largest display yet on an Apple Watch, with a 2-inch screen.

The device was said to be larger than the current Series 9 but smaller than the Ultra. Gurman also reiterated this report saying, "The device also will be thinner, though the design itself is unlikely to look much different."

Moreover, the Series 10 and the new Ultra 3 will feature a new chip, potentially paving the way for future AI enhancements, Gurman noted, adding that there are no plans to extend the full suite of AI features to the Apple Watch for now.

Why It Matters: Apple has a history of releasing products with plastic casings, such as the iPhone 5C in 2013. This device, which featured a polycarbonate exterior in a range of bright colors, received mixed reviews.

Critics felt that the plastic casing was a step down from the premium metal finishes of earlier models, and some customers believed the device was overpriced for what they saw as a lesser product, reported MacRumors.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.