Apple is rumoured to have begun building a cheaper version of the iPhone in order to grow market share in emerging nations, according to sources charged with building the device.

Two sources confirmed to Reuters that a Korean components maker has started manufacturing 8GB flash drives for the cheaper iPhone model. Apple currently uses Toshiba and Samsung for its flash drive components.

The sources also confirmed that Apple is targeting the end of September as the launch date for the iPhone 5, in line with most speculation surrounding the hotly anticipated smartphone.

The iPhone 5 is expected to have a larger screen, an improved antenna to overcome call quality issues, and an 8-megapixel camera, the sources said.

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