New unnamed sources have again reaffirmed that Apple will be launching a re-engineered version of the iPhone 4 at the same time as the new iPhone 5 towards the end of September.
According to Reuters, the new iPhone 4 will come with 8GB rather than the present 16GB or 32GB and may help Apple boost sales in emerging markets where price is a key factor.
Analysts told Reuters' Clare Jim and Kelvin Soh that Apple may well need a "completely new phone" with lower specifications in order to tackle the emerging markets.
The rumour doesn't come as a surprise as Apple launched an 8GB version of the iPhone 3GS when it launched the iPhone 4 last year, and an 8GB iPhone 4 could well mean that Apple is unlikely to launch a 64GB iPhone 5.
It is also very unlikely that a change of storage capacity alone will suffice to bring the price of the new iPhone 4 (or iPhone 4 Lite) down significantly.
Other options that could be considered may be switching to a single core version of the Apple A5 SoC to benefit from economies of scale, reducing the battery capacity, opting for cheaper material and launching the iPhone 4 with the same global baseband chipset as the iPhone 5.