Cheap iPhone 4 release in the pipeline with 8GB of storage?

We’re still waiting, arms folded and fingers crossed, for the arrival of the legendary iPhone 5 (or is that iPhone 4S?), but what will happen to the current model once its successor hits the shelves? New rumours suggest that it’ll be superseded by a kind of iPhone 4 ‘Lite’…

According to sources at Reuters, Apple is planning on launching a lesser and cheaper model of the iPhone 4 just ahead of the launch of the iPhone 5. Details are thin on the ground, but it’s said that it’ll be able to be picked up free on contract and that it’ll only boast 8GB of storage – as opposed to the current iPhone 4’s 16 or 32GB.

The ploy would be to mop up anyone who wants to join the iPhone party but doesn’t have the funds to snap up an iPhone 5. Speaking of which: the 5 is now reported to be landing in late September, with a larger display and better camera. …But we’re taking everything with a pinch of salt until Apple spills the beans.