Apple building 8 GB iPhone 5/4S?

Apple prepping 8 GB iPhone 5/4S

The next-generation Apple iPhone rumors are in full swing, as we’re fully expecting the iPhone 5 (maybe on Sprint too) and Reuters is now reporting that Apple suppliers are building an 8 GB iPhone 4 like device too. Could this be the cheaper iPhone 4S we’ve heard about?

The report said that Apple suppliers are building a device that’s similar to the iPhone 4 but which will only have 8 GB of memory. The thinking is that this will enable Apple to create a cheaper iPhone, one which could do better in certain markets or which could possibly be sold without a contract at a somewhat affordable price.

“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 told Reuters.

This logic kind of makes sense too, as Apple generally does like to offer multiple price points for its products. Its Macbook notebooks can be purchased at various pricing and the iPod has long had multiple prices and configurations. One could also think that iCloud could alleviate some of the concerns about storage space.

The other side of the argument is that maybe Apple doesn’t even need this lower-priced iPhone, as the iPhone 4 sold over 20 million units last quarter and the next will definitely sell more, especially if it lands on more U.S. carriers. Apple’s famous margins on its hardware may also be squeezed if it offers a cheaper device.

[Via Reuters]

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