Report: Apple to launch new iPhone 5 and redesigned iPhone 4 in Sept.

Reuters chimes in all the iPhone rumors with a report today that Apple will release a retooled iPhone 4 alongside the new iPhone 5, both launching in late September.

Reuters claims its sources indicate that the iPhone 4 will carry just 8 gigs of storage, half of what the lowest version of the current iPhone 4 carries, but that the new version will go for less than the $199 with contract costs of the current models.

Rumors have run rampant for weeks that Apple was readying an iPhone 4S in addition to or solely as the new iPhone upgrade. It’s hard to believe Apple would wait this long, going for beyond its usual June/July iPhone window, to only release a marginally better phone. The Reuters news sits well within the theories that the iPhone 5 internal hardware was tested inside the current i4 body and that a redesigned i5 would debut alongside a cheaper iPhone 4, perhaps $99 or less with a two year contract.

This would allow Apple to appeal to emerging markets as well as battle Android in the low-cost fields. Reuters report does run counter to some of the latest rumors about an October launch.

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