(Image Source: The Christian Science Monitor)

BY ADAM FALK

You're watching multisource tech video news analysis from Newsy.

Time for the latest Apple rumor-- this one’s a doozy.Two people with quote “knowledge of the matter” tell Reuters, Apple is making a cheaper iPhone 4 to release with its much-anticipated iPhone 5 – or 4GS or whatever Apple’s going to call it.

But is adding another Apple phone to the basket a good move? Gizmocrunch says the tech giant is responding to its competition. (Apple)

“Given the dominance of Android in the entry-level smartphone market, a cheaper iPhone option would certainly help Apple gain more customers.”

Can a cheaper iPhone snag customers currently opting for Android? The Christian Science Monitor reports, even an entry-level iPhone 4 probably won’t come with an entry-level price tag.

“An iPhone 4 contains about $187.51 worth of parts. But Apple’s premium image and innovative updates come with a hefty price tag. Research, prototyping, ads, Apple stores, and production quickly plump up $187 into a figure that most customers won't swallow.”

There might still be hope for a more palatable price because of the drop in flash drive storage. Wired says the downgrade might be the upgrade new smartphone users are looking for.

“Dropping the iPhone 4 back to 8 GB and 16 GB makes sense. After all, if you don’t care enough to buy the new model, then you probably don’t care about a lot of storage, and it keeps the manufacturing price low enough to still turn a profit.”

Finally, MacRumors notes-- this rumor helps make sense of the “leaked iPhone 5 parts” popping up recently.
 

“The back camera part that leaked yesterday was found to be a 5 megapixel part, not an 8 megapixel part as rumored. It’s possible the part could be intended for this cheaper iPhone 4.”

And here’s one more Apple rumor to chew on. One of Reuters’ sources says, look for the iPhone 5 at the end of September, not October. So go change your iCal. Again.
 

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