Like a mythical creature the iPhone 4S has been talked about but not seen. Now according to a report from the Apple Insider that fabled iPhone 4S could be surfacing this September alongside the much anticipated iPhone 5.

The iPhone 4S could be Apple's bid to conquer the vast pre-paid mobile phone market. The cheaper, pre-paid iPhone could go for as low as $300 to $500 and will be contract free. According to analyst Chris Whitmore the mid-ranged iPhone could tap the global market of pre-paid phone subscribers who can't afford iPhones. Out of 1.5 billion phone users, two thirds are pre-paid users.

The iPhone 4S will look like the low-end iPod touch and could provide Apple with a healthy profit margin. Rumors about a cheaper iPhone have been permeating the market for some time now. The Wall Street Journal and Bloomberg have both reported that Apple was working on cheaper iPhone that would be plan- free. The New York Times also reported that this mythical iPhone wouldn't be smaller only cheaper. This was partly proven when Apple released an unlocked iPhone 4 for $650 that wasn't reliant on one carrier and could work anywhere in the world.

A cheaper and contract-free iPhone would actually do Apple a lot of good. The $70 billion worldwide market has been largely ignoring the iPhone mostly because of the cost of the phone and the plan has been too prohibitive. If Apple launches a cheaper iPhone other manufacturers mainly Nokia who is leading in the pre-paid market would have to scramble to keep their hold on consumers.