Apple To Introduce 8GB iPhone 4S at iPhone 5 Event; Discontinue iPhone 3GS

Few days back a leaked internal memo revealed that Apple was advising its Genius Bar employees of low iPhone 3GS stock.

The fact that iOS 6 that will be released later this month will also support iPhone 3GS, seemed to indicate that Apple will not discontinue it, but the low stock sparked speculation that Apple is preparing to finally discontinue the third generation iPhone.

  

The Telegraph reports that according to their sources, Apple is likely to discontinue iPhone 3GS from its lineup with the launch of iPhone 5 and the 8GB iPhone 4 will take its place as the new entry level iPhone, which will be available for free with a 2-year contract.

The report claims that Apple will introduce an 8GB iPhone 4S, which will be available for $99 with a two year contract.

The new update will mean that the 8GB version of the iPhone 4 will be the entry-level iPhone, probably given away free on £20 per month contracts, as the 3GS is currently. Sources close to retailers also suggested that an 8GB version of the 4S could be introduced

The Telegraph also claims that Apple will be releasing iPhone 5 in three storage capacities. If Apple launches 8GB iPhone 4S then it would mean that it will release iPhone 5 with 16 GB/32 GB/64 GB storage capacities, same as the current iPhone 4S rather than bump up the storage and offer 32GB/64GB/128GB models. The report also claims that iPhone 5 will require new nano-SIM cards. Would you be disappointed if Apple didn't offer an 128GB iPhone 5? Or it doesn't really matter with iCloud?
[via The Telegraph]