Cheaper 8 GB iPhone 4 to join iPhone 5's late September release?

Will Apple release a cheaper version of the iPhone 4 alongside the iPhone 5? The latest report from Reuters seems to believe so.

While most iPhone rumors in recent months have focused on the iPhone 5, a few of them have aimed not at the next generation of the phone, but the current one.

The latest rumor comes via Reuters, which reports that Apple is working on a cheaper 8GB iPhone 4 to be released alongside the upcoming iPhone 5. The device's memory would be a significant step down from the 16GB and 32GB iPhone 4 models sold currently. Decreased memory was the only change mentioned in the Reuters story.

Reuters' report echos previous rumors concerning a cheaper iPhone, which sources said would work alongside Apple's iCloud service.

How significant this new iPhone 4's price cut will be is still unknown, but if the iPhone 3GS sales are any indication, the move is sure to be a smart one.