Apple Inc's Asian suppliers have started to produce a new version of iPhone 4 with a lower retail price, Tencent Tech reported.

The lower-priced iPhone 4 will be equipped with an 8GB flash drive, compared with the current 16GB and 64 GB iPhone 4 models, Reuters reported, citing an unnamed source familiar with the matter.

The flash drive for the reported new iPhone 4 is being manufactured by a Korean company, according to the source, without providing the name of the company.

Apple currently use flash drives made by Japan's Toshiba and South Korea's Samsung Electronics.

Both Apple and Samsung have declined to comment on the report.

The 8GB iPhone 4 is reportedly to be launched in the upcoming weeks. The current iPhone 4 model was launched in June 2010.

The lower-priced iPhone 4 is expected to bring in more sales revenue in emerging countries for Apple.

Besides market rumors about this 8GB iPhone 4, Apple is also reportedly going to announce a new iPhone 5 in September. Of all the wild guess about new features and functions of iPhone 5, a bigger screen, a better camera and an upgraded CPU are most likely to be realized in the new smartphone.