The word rumor has almost became synonymous with the Apple iPhone.

Several times a day a new rumor begins to spread and sends all the curious fanboys over the edge. Today’s rumor du jour comes by the way of Reuters. “Two people with knowledge of the matter” have told them that Apple is prepping the launch of an inexpensive 8GB iPhone 4, and could be hitting store shelves “within weeks“. The perpetrated timeframe of this could see it launch alongside the chupacabra of the tech world, the iPhone 5.

Reuters gives the full deets below:

“Asian suppliers to Apple Inc have begun manufacturing a lower-priced version of its hot-selling iPhone 4 with a smaller 8 gigabyte flash drive, according to two people with knowledge of the matter.

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.”

Currently Apple offers an iPhone 4 in 16GB and 32GB for $199 and $299, respectively, coupled with a two-year service contract. It’s been rumored that the new inexpensive 8GB iPhone 4 will try to hit the sweet spot for consumers, $99. Both Telus and Virgin Mobile have seen success with that price point concerning the iPhone 4.

Does an inexpensive 8GB iPhone 4 make sense for Apple? Tell us your thoughts.