Apple has slashed the price of the iPhone 4 and iPhone 4S in Brazil, sparking rumours that the imminent launch of the iPhone 6 (or iPhone 5S) will see earlier models phased out.

The iPhone 6 rumour mill has cranked into overdrive following the news that Apple has slashed prices of earlier models of iPhone in Brazil, in some cases by as much as 25 percent.

Apple's online store now offers the 8GB iPhone 4 for 1,099 Brazilian reals (R$), almost 27 percent down from R$1,499. The 16GB iPHone 4S has been discounted by 15 percent, from R$1,999 to R$1,699.

It's possible that Apple wants to clear stockpiles of older models, particularly the iPhone 4, in preparation for launching its next smartphone, the iPhone 5S or iPhone 6. Apple usually keeps some earlier iPhones on sale after a new launch, but only in certain spec configurations (normally the lowest storage capacity). The iPhone 4 is likely to be discontinued entirely when the next iPhone launches.

iPhone 6 concept images

But there are other possible reasons for the price cuts. One that would explain the price cuts being confined to Brazil is that Apple and Foxconn recently moved production of the iPhone and iPad to Brazil and are now able to produce device more cost-effectively. However, we've yet to see any equivalent price drops for iPad models, which such an explanation would lead you to expect.

Via MacRumors, and in turn O Globo (Portuguese)

See also:

iPhone 6 release date, rumours and leaked images

iPhone 6 rumours: Apple job listing hints at new colours for next iPhone

iPhone 6 rumour rollup for the week ending 15 March

iPhone 6 rumours: New iPhone components to begin shipping by end of May

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