iPhone 5 to sit alongside cheaper iCloud iPhone?

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The iPhone rumor mill has been pretty busy of late, besides speculation of what the next device will be like there have been numerous images turning up claiming to be of the new device. Previously there has been a lot of talk of a more affordable device being released by Apple. This talk doesn’t seem to want to go away, as today we have news of rumors that the iPhone 5 is to sit alongside a cheaper iCloud iPhone.

Reports have surfaced that a cheaper priced iPhone will be launching this fall, and is known internally at Apple as the iCloud iPhone. The team over at Electronista is reporting that three separate sources are making these latest claims about Apple’s upcoming plans for the iPhone.

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While the company is still expected to release the iPhone 5, the low costing option will lose most of its flash storage. This will mean that owners will have to rely on the iCloud service, as well as accessing things such as documents, music, and video via the internet.

It is claimed Apple is looking to price the device for around $400 unsubsidized, which is around $200 less than the iPhone 4 is currently priced unsubsidized. There is even talk the device could actually be available free on a two year contract. This is something which the company hasn’t been done before, as an iPhone 3GS 8GB is currently $49 on AT&T with a two year contract.

The new iCloud iPhone is rumored to be using a lot of the parts the iPhone 4 currently uses, and these components are not only already available but cheaper as well. There is one rumored difference with the handset though, as the new device is said to use an aluminum back panel similar to the iPad 2.

This will cut the cost down further as the glass panel on the iPhone 4 costs more, and it’s the development of a lower cost iPhone is thought to be the reason why there was no usual summer iPhone release. It is thought we can expect to see the new handsets towards the end of September in time for the busy holiday season.

Do you like the idea of an iCloud iPhone which will provide a cheaper alternative to owning an iPhone?

  • http://www.twitter.com/bkellyfun/ Bradley Kelly

    Well that would be good but I wounder if you can’t a 3G signal, if the files will still load fast?