Reuters posted a story that Apple suppliers building a cheaper 8GB iPhone

The flash drive for the 8GB iPhone 4 is being manufactured by a Korean company, one of the people said Tuesday, declining to name the company. Apple currently sources its flash drives from Japan's Toshiba and South Korea's Samsung Electronics.

The sources declined to be identified because the information has not been made public.

Apple, which demands high levels of secrecy and security from suppliers and employees, declined to comment. Samsung also declined to comment.

  Apple suppliers building cheaper, 8GB iPhone