Apple suppliers making cheaper 8GB iPhone

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 some unidentified sources, the flash drive for the 8GB iPhone 4 is being manufactured by a Korean company. Apple currently sources its flash drives from Japan's Toshiba and South Korea's Samsung Electronics.

The existing iPhone 4 was first launched in June 2010 with 16 GB and 32 GB versions, with a white version added to the lineup in April. The 8GB version is expected to launch within weeks.
Some analysts said the cheaper 8GB iPhone 4 could help Apple boost sales in emerging markets.

The Launch of iPhone 5:
In addition to the launch of the smaller iPhone 4, Apple is targeting an end-September launch for the next-generation iPhone 5.

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

The iPhone 5's two manufacturers have been told to prepare production capacity for up to 45 million units altogether. The phone will be made by Hon Hai and Pegatron.

Apple sold 20.34 million iPhones in the second quarter versus an expected 17 million to 18 million, and is increasingly looking to Asia to boost future earnings.

Asia-Pacific - which accounts for about one-fifth of its total revenue - and Greater China in particular, helped Apple's revenue surge 82 percent to $28.6 billion in April-June.

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