According to Reuters, Apple is set to release an 8GB version of the iPhone 4. Reuters claims "people with knowledge of the matter" are reporting that Apple has already instructed its Asian manufacturers to begin production of the lower priced iPhone 4. The 8GB version is supposed to be released sometime in September.

A lower priced version of the iPhone 4 could be a very attractive device for a lot of people. Apple is about to announce the next version of the iPhone in the coming weeks so there will continue to be a lot of iPhone "noise." Chalk this up to rumor for now.