Rumor: Cheaper 8 GB iPhone 4 in the works?

Apple's iPhone 4 has been highly successful in its current 16 GB and 32 GB versions, but now rumors have hit the Internet that a new but cheaper version of the current iPhone is in the works. According to a Reuters story, which cites unnamed sources, the cheaper iPhone 4 would have 8 GB of flash memory inside, made by an unnamed Korean-based supplier. The cheaper version of the iPhone 4 is supposed to be released "within weeks", if the story's sources are correct. There's no word on what price point the new 8 GB iPhone 4 will have.

In related news, TechCrunch is reporting that the upcoming launch of the iPhone 5 will in fact be a "world phone". Against using unnamed sources, the story claims that the iPhone 5 will support both GSM and CDMA wireless networks inside. If true that would allow the iPhone 5 to be used on both Verizon and AT&T's networks without having to get an iPhone 5 that works on just one network, like the current situation with the iPhone 4.

The Reuters story claims that Apple is preparing for a late September launch for the iPhone 5. The phones two manufacturers have been preparing to make up to 45 million units of the iPhone 5 in preparation for the expected high demand. The iPhone 5 is expected to have a bigger touch screen, a more powerful processor, an 8 megapixel rear camera and more improvements. As usual, Apple is officially not commenting on the latest rumors.

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