Cheap iPhone 4 will be on sale

Original author: Clare Jim & Kelvin Soh
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Asian Apple suppliers have begun production of a cheap version of the best-selling iPhone 4 with a reduced memory capacity of 8 gigabytes, according to information received by Reuters reporters from two "competent" people.

A flash drive for the iPhone 4 8Gb will be produced by a Korean company, an anonymous source said on Tuesday. Currently, Apple receives flash drives from the Japanese company Toshiba and the South Korean concern Samsung Electronics.

Persons who acted as sources of information refused to introduce themselves, citing the secret nature of the data provided.

Apple, demanding a high level of secrecy and security from its employees and partners, refused to comment on this message, as Samsung refused to do so.

The existing iPhone 4 was released in June 2010 in versions with 16 and 32 gigabytes of memory. In April of this year, the release of the iPhone 4, made in a white case, took place.

A version of the iPhone 4 with 8 gigabytes of memory on board will be presented to the public in the coming weeks, sources say.

Some analysts suggest that the cheap version of the iPhone 4 will help Apple dramatically increase sales in emerging markets.

“Perhaps Apple expects to enter the emerging markets segment, whose consumers want to switch from premium phones to low- and mid-range smartphones, which usually cost $ 150- $ 200,” said Bonnie Chang, an analyst with Yuanta Securities. “But I think that the iPhone 4 8Gb is unlikely to drop below the $ 200 bar in value, so Apple will still need a brand new smartphone with low specs for emerging markets.”

iPhone 5 will be released in late September?

In addition to the start of sales of the “stripped down” fourth iPhone, Apple aims to launch the iPhone 5 at the end of September, one of the sources said, confirming messages previously received from specialized Internet resources.

The new iPhone 5, which some call the iPhone 4s because of its strong resemblance to the iPhone 4, will have a larger screen, a better antenna and an 8 megapixel camera, according to one source.

Two manufacturers of iPhone 5 were ordered to prepare enough capacity to produce 45 million new smartphones, the source said. He added that these manufacturers are Hon Hai and Pegatron.

In the second quarter, Apple sold 20.34 million iPhone 4 smartphones against the planned 17-18 million and looks with enthusiasm on Asia as an opportunity to increase its profits in the future.

Company CEO Tim Cook said in July that Apple is particularly optimistic about Greater China. “I am firmly convinced that now we are just groping for the surface,” Cook said of China. “I think we have amazing opportunities in China.”

The Asia-Pacific Region (APR), which accounts for one fifth of Apple's total revenue, and in particular Greater China, helped increase the company's revenue by 82%, to $ 28.6 billion in April-June.

In general, Apple’s APR revenue more than tripled to $ 6.3 billion for the quarter.

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