Netherlands-based company Fairphone is expected to launch what it claims to be a new environment-friendly modular smartphone, called the Fairphone 2, sometime by this coming fall.

The new Fairphone 2 smartphone is expected to offer users the ability to replace and upgrade different external and internal components, by ordering new ones.

Reports claim the components that users can replace and upgrade include the outer case, display screen, RAM, processor and camera, among others.

The new Fairphone 2 handset is expected to be released in the European market before the end of the year, and will cost around US$590. According to the Fairphone website, pre-orders will begin this summer.

It still remains uncertain whether the phone will be released to the U.S. market and other regions.

The Fairphone 2 handset device is expected to come with 2 GB worth of RAM and 32 GB of internal memory space. GSM Arena reported that the new phone will run on the Android 5.1 Lollipop operating system and will have two SIM card slots and a microSD card slot.

It will be powered by Qualcomm's Snapdragon 801 processor and a removable 2420mAh battery. It will also come with an 8 mega pixel rear camera.

The new Fairphone 2 smartphone is expected to sport a 5 inch display screen with a 1080p resolution, protected by the Corning Gorilla Glass 3. GSM Arena reported that the handset will be covered by a rubberized material, while Phone Arena added that it will also come with a standard 11 millimeters thick shell.

The Netherlands-based company said it plans to make available to users more hardware components in the future. The company also added, according to a report by Phone Arena, that the new modular smartphone will let users easily upgrade and remove its components just like a desktop computer.

The upcoming Fairphone 2 handset will likely compete against Google's latest Project Ara smartphone, which also enables users to replace old components with new ones. The Project Ara device will only cost around US$100, according to a report.