BGR:

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. We reported that we were able to independently confirm that the iPhone 5 featured a radical new design, however this source of ours isn’t quite sure that will be the next iPhone. Whether it’s the iPhone 4S or 5, it will be coming out or “at least announced by the end of Summer, late August-ish.”

I think it’s pretty safe to say at this point that nobody really knows what’s going to happen with the next iPhone. Well played Apple.