Apple's iPhone 5 due in September, plus new low-end iPhone 4: report

Been pining for a cheap iPhone but don't want to shell out for a two-year old 3GS? You may be in luck.

Apple has begun production on a cheaper, low-end iPhone 4 that will be released "within weeks" that's likely to sell for less than $200, according to a new report from Reuters citing anonymous sources.

The iPhone will have eight gigabytes of storage — the current models have either 16 GB or 32 GB — but will otherwise be identical to the current models, the report said. The new phone is expected to help Apple get a foothold in emerging markets, where it's been lagging behind competition.

"Apple may want to push into the emerging market segment where customers want to switch to low- to mid-end smartphones from high-end feature phones, which usually cost $150-200," said Yuanta Securities analyst Bonnie Chang.

In addition to the launch of the smaller iPhone 4, Apple is targeting a late-September launch for the next-generation iPhone 5, one source told Reuters, confirming reports that have been bouncing around the blogosphere's echo chamber for months.

The new iPhone, which some call the iPhone 4S because of its largely identical appearance to the existing iPhone 4, will have a bigger touch screen, better antenna and an 8-megapixel camera, one source told Reuters.

Also Tuesday, The Wall Street Journal reported that the iPhone 5 will also be released on Sprint, though their timeframe points to some time around October.

Apple didn't return requests for comment.

(with Reuters)