Cheaper device would lose most flash storage

The low-cost iPhone Apple may be launching this fall is internally known as the "iCloud iPhone," three anonymous sources claim. While Apple is still expected to launch a separate iPhone 5, the iCloud iPhone will allegedly offer a cheaper option at the expense of most of its flash storage. Owners would therefore be dependent on iCloud and other Internet services for access to things like music, documents and video.

Apple is said to be aiming at a $400 unsubsidized pricetag, some $200 less than an unsubsidized iPhone 4 currently costs. The device might then be completely free on a carrier contract, some Apple has never before attempted. Even an 8GB iPhone 3GS is $49 on a two-year AT&T contract.

The iCloud-based phone is further described as using many of the same parts as the iPhone 4, since the components are already available and have dropped in cost. One difference is that the iCloud hardware will supposedly use an aluminum back panel like the iPad 2's, since the iPhone 4's glass is a more expensive option. The creation of the low-cost model is thought to be why Apple delayed its normal summer iPhone release window; a launch is predicted for the last week of September.

By Electronista Staff