iPhone news - 3GS, 4, 5 - freebies and price drops

James Martin

(CBS) - Between Monday's buzz over electronics retailer Best Buy's iPhone 3GS giveaway and October's iPhone 5 rumors, we've all but forgotten the iPhone 4.

That's about to change.

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According to Reuters an anonymous source says manufacturing has begun on a lower-priced model of the iPhone 4. The smartphone will have an 8GB flash drive (current models have 16GB and 32GB drives) and "launch within weeks." No prices have been confirmed.

When it comes to Apple, rumors abound, but even almighty Steve Jobs can't hide an entire manufacturing plant in Asia producing iPhones. This is the closest we've come to confirming that two models will be introduced this fall.

Apple's cheaper model is a no-brainer. Emerging markets are a key to increasing profits for the computer giant.

We're definitely in iPhone 5 rollout territory. On Monday, Best Buy had a one-day iPhone 3GS giveaway. The phone was free with a new or renewed 2-year AT&T contract. Prices have since returned to $49.

There is an Apple event slated for September 9, which is usually reserved for iPod news. With no iPhone news at the Worldwide Developers Conference (WWDC) this summer and a roster of new products that are itching for a release date, there is much speculation that the event will be used to announce the iPhone 5 and lower-priced iPhone 4.

Apple has been on the forefront of mobile technology since the release of the original iPhone in June 2007. Since then, Apple's mobile operating system, iOS, has been a hit with consumers and is widely considered to be a game changer for hand-held devices.

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