News of the change first appeared in a purported internal email from German wireless carrier o2, which will list the handset for sale at €509 ($707), €60 under the current €569 ($791) cost of the 16-gigabyte model. The communique was obtained by German blog stadt-bremerhaven.de. There is no word on what affect such an introduction would have on the availability of the iPhone 4s, which is currently the only iPhone available in an 8-gigabyte capacity and is often given away for free when consumers subscribe to a two-year service plan with a wireless carrier. Apple also sells an 8-gigabyte version of the older iPhone 4 in developing markets like China and India. A move to replace the iPhone 4s and iPhone 4 could make sense, as those devices still use Apple's older dock connector technology and sport smaller, 3.5-inch displays rather than the 4-inch display introduced with the iPhone 5. Read the full story at Apple Insider.