iPhone Nano or 3GS replacement coming?

Sources suggest scaled down 8GB iPhone 4 on its way

While not strictly an iPhone 5 rumour, this news could certainly have huge relevance to the launch of the iPhone 5, with an 8GB iPhone 4 replacing the iPhone 3GS

Sources have suggested to TechRadar that a 8GB flash drive is being built for the iPhone 4, implying a scaled down version of the Apple product, with a suitable price tag to match.

While not strictly what could be called an 'iPhone Nano' it's simply a more wallet-friendly iPhone with memory size and price tag to boot. Some have have suggested this would be released alongside the other iPhone 4 handsets, this would seem like an odd move however with the iPhone 5 just around the corner.

Another theory is that this 8GB iPhone 4 will in fact fulfill the current role of the iPhone 3GS, offering an iOS phone but without the hugely premium price, making way for the iPhone 5 to take the larger memory sizes and higher specs.

What do you think, is this the new replacement for the 3GS or will they be releasing it before iPhone 5? Join the debate on Twitter and Facebook.

Source: TechRadar