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Reuters says in an exclusive report today that it has heard from two sources in the know in Apples supply chain that Apple is planning to launch a cheaper iPhone 4 with a smaller 8GB flash drive this September, along with the iPhone 5. According to the report, the flash drive is being made by a Korean firm, which the source refused to name, although Reuters notes that Apple currently gets its flash drives made by Toshiba in Japan and Samsung in South Korea, so its possible that the latter is responsible for making this new drive. Both Samsung and Apple have declined to comment on the story, of course! This is not the first time that we have heard talk of Apple releasing a cheaper phone this fall alongside the iPhone 5, but this is the first time that we have heard that it might be a cheaper version of the iPhone 4. The Reuters report also says that the iPhone 5 will be launched by the end of September (Reuters does not specify if they mean that it will be both launched publicly by Apple and then go on sale in September), but that some insiders are referring to it as the iPhone 4S, because it is basically very similar to the iPhone 4, although with a bigger touch screen, a better antenna (one would hope so!) and an 8-megapixel camera. Many of the recent iPhone 5 cases that have surfaced have shown that it has a larger screen. According to Reuters, the iPhone 5 is being manufactured by Hon Hai and Pegatron, who have been told by Apple to prepare to build up to 45 million units.
Source: Exclusive: Apple suppliers building cheaper, 8GB iPhone | Reuters, via MacRumors