Reuters is reporting that Apple has started manufacturing of a lower priced iPhone 4 version that has 8GB of flash memory. Also Apple is sourcing the 8GB flash memory from a Korean company in place of Samsung or Toshiba to bring the cost further down. According to Reuters, cheaper iPhone 4 will be released along side the new iPhone 5 by end of September.

In other iPhone related news, Robin Wauters posted on TechCrunch that next gen iPhone 5 will support both CDMA and GSM networks via a dual-mode chipset. He wrote:

I was recently approached by a developer of some of the most popular apps on the iOS platform today, who asked not to be named and offered solid proof that supports the above claim.

According to this person, and app usage logs I was sent, a tiny number of people have recently registered for one of their applications from a single, brand new Apple device that is decidedly dual-mode – meaning it supports both CDMA and GSM.

The logs show that the app has been briefly tested by a handful of people using what is almost certainly an iPhone 5, evidently running iOS 5, sporting two distinct sets of mobile network codes (MNC) / mobile country codes (MCC). Those codes can be used to uniquely identify mobile carriers.

This would indicate that the rumors about iPhone 5 being a world phone would come true. Till now what we have heard from various sources is this iPhone 5 will be launched in September with an October shipping date. It will have a larger screen, slimmer design, faster A5 processor and dual mode CDMA/GSM chipset.