The rumor claims that Apple could be working on an 8GB model that could be launched by the end of the year. The intention of this more affordable model is to target the emerging markets where platforms such as Android and Windows Phone are doing much better due to their general affordability.
No word on pricing but the report suggests that it will be priced slightly higher than what the 16GB iPhone 5c cost. This might be a bit ridiculous to some, but let’s not forget that compared to the iPhone 5c, the iPhone 5s is more powerful specs-wise. It also comes with Touch ID and a aluminum build, versus the plastic build of the iPhone 5c.
In any case take it with a grain of salt for now, but Apple has never really been one to cater to emerging markets so we’re not sure why they would start now. However if they do, it will be interesting to see how well-received their devices will be.