In an exclusive report, Boy Genius Report’s Jonathan Geller says that Apple is about to launch an inexpensive iPhone costing $350 by the end of summer:

According to our source, Apple will indeed be launching a prepaid / lower cost iPhone this year. We are told the handset will retail for no more than $350 without contract. Ready for the really interesting part? It’s entirely possible that the low-cost iPhone will in fact be the iPhone 3GS.

The author theorizes that “there would be an iPhone 4S in addition to the prepaid iPhone 3GS available within the next month to two” in addition to the iPhone 4 which BGR is told Apple will continue to sell…

You may remember that the same publication previously reported that iPhone 5 will be “radically different” from the iPhone 4. Similarly, This is my next heard that the current iPhone 4 design is “out of favor at the highest levels of the company” following the Antennagate scandal. We here at 9to5Mac speculated that Apple might make the fourth-generation iPod touch into an inexpensive iPhone for the masses that watchers have been clamoring for in order to fend off the Android march.

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