Rumour: $350 ‘Cheaper iPhone’ Will Be the iPhone 3GS, iPhone 4S/5 Coming August

Let the iPhone 5 rumour mill cometh, and never die. Today’s report comes from BGR, as they claim sources have told them Apple’s cheaper iPhone will cost $350, and will be infact the iPhone 3GS:

According to our source, Apple will indeed be launching a prepaid / lower cost iPhone this year. We are told the handset will retail for no more than $350 without contract. Ready for the really interesting part? It’s entirely possible that the low-cost iPhone will in fact be the iPhone 3GS.

But wait, it doesn’t stop there. Their sources mention the next iPhone 4S or 5 won’t be a radical new design, but a minor upgrade to the iPhone 4. A ‘late August’ announcement will introduce this new model. So after it’s all said and done, Apple will have iPhones for the lower, mid-range, and upper levels of the smartphone market: iPhone 3GS, iPhone 4, and iPhone 4S/5.

Take these rumours for what they’re worth. We do know that an iPhone 4 successor has to be coming soon, as there was no announcement made at 2011 WWDC. Reports have stated suppliers are preparing for a Fall launch.

As always, expect more ‘rumours’ to come as we approach September. Apple has kept an iron clad seal on leaks this time around, compared to last year’s iPhone 4 SNAFU.