Suppliers to Apple Inc have reportedly begun production of the lower-priced iPhone 4.
The Reuters news agency cited two sources working with the supplier as saying manufacturing had begun on an 8gb flash drive for the popular smart phone. Currently, the iPhone 4 is available in 16 or 32gbs only.
Reuters' source is based in Korea. Apple currently sources its flash drives from Japan's Toshiba and South Korea's Samsung Electronics.
Apple UK and Samsung have declined to comment, although the company has previously said it would not release a low-cost iPhone unless it was assured of a market win. The phone could help Apple launch into emerging markets in developing countries.
The iPhone 4 is rumoured to be outmoded in September with the release of the iPhone 5, although as with other Apple rumours they are yet to be confirmed.
One more for the rumour mill then? Apple speculators must be questioning why the company would make the move into low cost when the imminent iPhone 5 release will most likely release a glut of iPhone 4s into the low-cost market.