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8GB iPhone 4S to join iPhone lineup next week as Apple drops iPhone 3GS?

Last week, we reported on iPhone 3GS shortages, and now, according to The Telegraph, next week, Apple will discontinue the 8GB iPhone 3GS and add a new 8GB iPhone 4S. In this case, the current 8GB iPhone 4 would replace the 3GS as the entry-level (probably free on contract) iPhone. A new 8GB 4S is said to come in at the current 8GB iPhone 4’s spot in the lineup, and Apple will sell the new iPhone 5 models in the higher configurations replacing the current  iPhone 4S capacities.

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