It's not El Cinco, it's El Quatro Cheapo
Apple is apparently preparing to launch a cheap version of the iPhone 4 with only 8gb of memory. This is being reported by Reuters, citing two people "with knowledge of the matter." The idea is to make inroads into emerging markets who don't want to or can't spring for the regular iPhone 4 which comes in 16gb and 32gb options. No word on whether anything else will be stripped down for the new phone to accommodate the price - maybe the retina display screen, maybe the video camera - but if it loses too much then it ceases to be an iPhone 4 so I'm not sure what happens there.