Apple could be gearing up to launch a low-cost iPhone referred to as the “iCloud iPhone” that combines its new iCloud service and iOS 5, according to Apple ‘n’ Apps.
A number of sources have told the website that Apple has been putting together a cheaper iPhone model that would be free for two-year contracts. The iCloud iPhone could use the internals from the fourth-generation iPhone while featuring a lower memory storage. The device would make users keep their files in the cloud instead of the device itself.
Trevor Sheridan of Apple ‘n’ Apps cites three “independent sources” who claims that Apple will be releasing two iPhones this autumn: the iPhone 5 and the iCloud iPhone.
“The iPhone 5 will be a quality upgrade, but the star of the show will be the cheaper iCloud iPhone alternative. Apple wants to offer a lower priced iPhone while still maintaining their industry leading profit margins,” wrote Sheridan.
Taking away the iPhone 4’s flash storage will reduce 15 percent of its cost, making the iCloud one of the primary sources for storage. Reports say that Apple aims for a $400 building cost, around $200 less than the total cost of the iPhone 4.
The idea of a low-cost iPhone looks good, considering that Android-powered smartphones have flooded the market with phones cheaper than Apple’s iPhone. Analysts believe that launching a cheaper iPhone would be a good move to exploit the market.
Do you think its a good idea for Apple to launch an iCloud-dependent iPhone? Could it replace a full blown iPhone 5?