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Like HP's $99 TouchPad? Apple Launching Cheaper iPhone 4

Apple is producing a cheaper version of its popular iPhone 4 with a smaller 8GB capacity of flash memory, according to Reuters.

The media outlet reported that sources familiar with the matter informed them that a Korean company was in charge of manufacturing the 8GB flash drives and that the phone could be launched within weeks.

Apple is reducing the flash drive capacity from 16GB, in the original iPhone 4 launched in June 2010, to 8GB, which suggests one way on how the company is lessening the price for its smartphone.

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The intention for a cheaper iPhone might stem from a growing demand of smartphones in emerging markets such as China and India, places where paying $400 to $500 for a mobile device may not be feasible for the majority of the population.

Although no word is out yet on how much this cheap iPhone might cost, Reuters quoted analyst Bonnie Chang from Yuanta Securities saying that for an 8GB iPhone 4, a price below $200 would be hard.

The news coincides with one other company, Hewlett Packard, who is also making headlines for offering its mobile device, the TouchPad, at an uber cheap $99, although in this case the cost results from a failed product campaign.

iPhone 5 Coming Soon?

Besides a cheap iPhone 4, many Apple fans are also eager to know when the company's next generation smartphone or iPhone 5 will make its debut.

According to website 9to5Mac, the iPhone 5 should be released on Oct. 7 with pre-orders for the unit starting from Sept. 30.

The iPhone 5 will come with a dual-core A5 processor, an eight-megapixel camera and Apple's new mobile operating system, the iOS.

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