Report: Apple working on cheaper 8 GB iPhone 4

Apple (NASDAQ:AAPL) is working with its suppliers to build a cheaper version of its iPhone 4 model with an 8 GB memory drive, according to a Reuters report.

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The report, citing unnamed sources, said the phone's new flash drive is being made by a South Korean firm; Apple's current flash memory for the iPhone is made by Samsung. The cheaper model is expected to be launched within weeks, the report said.

An Apple spokeswoman did not immediately respond to a request for comment.

Reports of a cheaper iPhone have been circulating for months, and have been a topic of speculation for analysts of all stripes. Many now expect Apple to announce a new iPhone in September, with a possible October launch. Apple COO Tim Cook obliquely addressed speculation of a cheaper iPhone in July during the company's earnings conference call. "We will only make products that are the best in the world and that we're proud of," he said. "If we can do that and the price is lower, then we're great with that."

Separately, TechCrunch reported that, according to an unnamed application developer, the next iPhone will be a dual-mode, GSM/CDMA handset, as many also expect. The report said that, according to application logs, apps for the new iPhone will use both network technologies.

The report dovetails with comments Verizon Communications CFO Fran Shammo made in May at an investor conference. He said Verizon will offer the next model of the iPhone at the same time as AT&T Mobility (NYSE:T), and that the Verizon version of the next iPhone will work in the same number of countries as AT&T's version--comments that likely indicate the next version of Apple's iPhone will support both CDMA and GSM. Verizon operates a CDMA network and AT&T runs a GSM network. Apple never confirmed the comments. 

For more:
- see this Reuters article
- see this TechCrunch post

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