Foxconn factory in Brazil seems to already working in the production of low cost iPhone 4S. Gizmodo Brazilian branch site was able to pose the internal components of a code-named iPhone N90A 4S and of course it looks exactly like the iPhone 4. The guys from Gizmodo say that some of these components will not be used to build terminals iPhone because they have manufacturing defects but it is clear that Apple is planning to build a 4S iPhone.
Everything indicates that the N90A variant for the cheaper iPhone will be announced alongside the iPhone 4S (N94). Because N90A virtually the same model number as the N90 has, we expect that the changes will be small.