Apple Building Low Cost 8GB iPhone 4, and iPhone 5 Launching End of September?

More iPhone rumours are coming your way, this time it’s an ‘exclusive’ report from Reuters, reviving cheaper iPhone rumours from before and also speculating on the iPhone 5 launch date.

According to two sources with ‘knowledge of the matter’ (I love that line), a cheaper 8GB iPhone 4 has already undergone manufacturing by Apple’s Asian suppliers, with the flash drive being manufactured by a Korean company (Samsung??), and is expected to ‘launch within weeks’.

Asian suppliers to Apple Inc have begun manufacturing a lower-priced version of its hot-selling iPhone 4 with a smaller 8 gigabyte flash drive, according to two people with knowledge of the matter.

The flash drive for the 8GB iPhone 4 is being manufactured by a Korean company, one of the people said Tuesday, declining to name the company. Apple currently sources its flash drives from Japan’s Toshiba and South Korea’s Samsung Electronics.

The point of a cheaper iPhone 4 is to launch Apple’s push into emerging markets, where Android phones and BlackBerrys tend to dominate the low/mid range. An iPhone 4 below $200 would most likely be redesigned with lower specs to accommodate the price, according to Yuanta Securities analyst, Bonnie Chang.

The iPhone 5 is Coming By the End of September?

As for the iPhone 5, sources mention to Reuters it’s slated for an end of September launch, and will look identical to the iPhone 4 but have a larger screen, better antenna, and 8 megapixel camera. Manufacturers have had orders for up to 45 million units with Hon Hai and Pegatron making the phone.

Previously we’ve heard of a cheaper iPhone from the WSJ, an October launch date via TiPB, and Digitimes reports mentioning Pegatron manufacturing the iPhone 5. With iOS 5 beta 6 released just last week, I’d expect an Apple event for September to come soon to announce iOS 5 GM and the next iPhone models.