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Cheaper Apple Smartphone To Launch Alongside iPhone 5?

Recent reports are indicating that Apple might launch two new iPhones this year, the iPhone 5 and a cheaper version of the iPhone 4.

Citing two people with the knowledge of the situation, Reuters is reporting that Apple’s Asian manufacturing partners are creating a low priced version of the iPhone 4 which will come with an 8GB flash drive.

According to the sources, the iPad maker is sourcing the flash drives for the cheaper iPhone 4 from a Korean manufacturer.

Toshiba and Samsung make flash drives for Apple but one can guess which company it might be, taking into consideration the on-going legal battle between Apple and Samsung.

Apple introduced the iPhone 4 back in June 2010, which came in 16GB and 32GB variants. A cheaper iPhone 4 will allow Apple to penetrate emerging markets. China Mobile is rumoured to have signed (or be very close to signing) a deal with Apple to offer the iPhone on the world's largest mobile network provider.

Sources have revealed that the company could be launching the handset within a few months. Some industry insiders have been speculating about the launch of a smartphone known as the iPhone 4S fitted with the iPad 2's A5 processor - though this would not likely be a cheaper version.

The purported cheaper device is expected to launch alongside the highly awaited iPhone 5, which will come loaded with iOS 5, have a curved back and an 8MP camera.