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iPhone 4 with smaller flash drive expected

Apple preparing 8GB iPhone 4 model, according to Reuters

iPhone 4 with smaller flash drive expected
An iPhone 4 model with an 8GB drive is expected to be announced soon.

Apple is expected to release a version of its iPhone 4 with a smaller flash drive, according to Reuters.

Unnamed suppliers to Apple have been manufacturing an 8GB model of the iPhone 4, which is expected to be cheaper than the existing 16Gb and 32Gb models.

Reuters said that sources familiar with the business reported that the new model is being manufactured by a Korean company, and will be released in a few weeks.

The presumably cheaper model may be an attempt to penetrate emerging markets according to analysts.

Bonnie Chang, analyst with Yuanta Securities said: "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. But I think for an 8GB iPhone 4 the price is hard to go below $200, so Apple will still need a completely new phone with low specifications for the emerging markets."

Reuters also reports that the upcoming iPhone 5 is expected to have a bigger touch screen, better antenna and an 8-megapixel camera, according to sources.

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