The rumor mill has been churning out a large number of iGadget-related whispers, with reports saying that the iPhone 5 is slated for an October release, and the iPad 3 will be coming out in early 2012.

Besides the next generation iDevices that get pumped out every year, there could be a cheaper version of the iPhone 4 coming out “within weeks.” According to “two people with knowledge of the matter” we’re going to be seeing a more affordable iPhone 4 with a smaller 8GB flash drive. Apparently Asian suppliers to Apple have started manufacturing the 8GB iPhone 4, with the flash drive being manufactured by an unnamed Korean company. Apple currently sources its flash drives from Japan’s Toshiba and South Korea’s Samsung Electronics.

While nothing’s been made public and both Apple and Samsung refuse to say anything, a cheaper 8GB iPhone 4 could help Apple boost sales in emerging markets, according to analysts. Apple could be looking to gain the business of customers with high-end feature phones who want to switch to low or mid-end smartphones. However, to target this emerging market Apple will have to lower the price to below $200, to be able to compete with other low-end smartphones. In short, the iPhone 4 might need a bit of a makeover to reach that goal.

We’re also hearing the iPhone 5 will have a bigger touch screen, better antenna and an 8-megapixel camera. The iPhone 5′s two manufacturers have been told to prepare production capacity for up to 45 million units altogether, according to the anonymous sources.