iPhone 5 and Budget iPhone 4 to Launch in China in October?

AllThingsD summarizes a Chinese language report that originally appeared at Sohu.com.
The original report claimed that China Telecom had reached a preliminary agreement with Apple to begin selling two new versions of the iPhone before the end of October.
“According to Sohu.com, China Telecom will offer two types of iPhone that include the iPhone 5 and a ‘simplified iPhone 4,’” says White. “Essentially, this potential ‘simplified iPhone 4′ would be a more economical version of iPhone to target a broader customer base in developing countries such as China, allowing for an expanded market opportunity.”
The report claims there will be two new iPhones: the iPhone 5 and a "simplified" iPhone 4. The simplified iPhone 4 is expected to be a cheaper version of the current iPhone to target the low-end market. While there have been multiple reports that China Telecom will be selling the iPhone later this year, this is the first that specifies the types of models that the carrier will be selling.
This isn't the first time we've heard suggestion that Apple will be launching a lower cost iPhone 4. Previous claims have included a move to cheaper components to reduce the cost of the device. Meanwhile, other claims have suggested that Apple might keep the iPhone 3GS around as a free with contract option. It's important to note that the Chinese market is quite unique from the rest of the iPhone market, and it may get its own distinct models. Apple originally sold Wi-Fi disabled iPhones in China.
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Top Rated Comments
The "budget" iPhone 4 could simply be an iPhone 4 with 8GB of flash, which is what Apple has done with the iPhone 3GS and iPhone 3G before. Maybe (maybe) Apple would also put the iPod touch non-IPS screen into the 8GB iPhone 4. But I wouldn't expect any more redesign than those two changes.
And you know what? An 8GB IPS-less iPhone 4 would be a damn fine smartphone.
This one is old though. We really need a drunk Apple employee at a bar right about now because I just wanna see the damn thing already. Will it really be larger in size like rumored? Will it have a larger screen? Will it have a glass back? Will it have LTE 4G since it is larger? Most importantly, will it blend? I want answers!!!
IFone 4 Lite for everyone !
Alright. Got the first one fixed, but this sentence still doesn't make sense?
:D:D