By Paul Jay, CBCNews.ca.

On Monday Apple Inc.'s annual developer conference begins, and big things are expected from the company that brought the iPod, iTunes and the iPhone.

One thing in particular that is the source of increasing speculation is the return of a cheaper, 4 GB iPhone. Apple originally launched the iPhone in the United States in 4 GB and 8 GB models, but quickly phased out the 4 GB for higher-end versions of the phone.

But now rumours persist that a phone as cheap as $99 US could among the new models announced on Monday.
Adding another wrinkle to the news is that one of the sources of the rumours was a reportedly leaked Fido document showing the new phone. Fido and its parent brand Rogers are the only two wireless carriers in Canada with the network to carry the iPhone.

We've been down this road with Globalive before and their supposed leaked plans, so we've put a call through to Rogers to see if we can confirm or deny this one.

Either way, it won't be long to whatever Apple has up its sleeve is revealed. The timing for Apple couldn't be better: on Saturday Palm's Pre handset, which critics have called a worthy rival to the iPhone, goes on sale.

UPDATE: Ashleigh Blackmore of Rogers responded in a brief email: "We don't comment on rumour or speculation."