iCloud based iPhone rumored to arrive with the iPhone 5

iCloud based iPhone rumored to arrive with the iPhone 5
We can't stop iPhone rumors any more than we can stop the seasons or the tides, especially when those rumors focus on the mythical low-cost iPhone which consumers have been calling for since the iPhone first launched. The newest rumor comes from Apple 'n' Apps Trevor Sheridan, who says he spoke with 3 sources "connected to Apple". Not the most to work with, but it'll have to do. 

The rumor has it that Apple will have a low-cost iCloud iPhone launching along with the iPhone 5. The idea is that Apple will cut costs by using some of the same internal hardware as the iPhone 4, and much smaller amounts of internal storage (possibly only about 8 gigs max), so the phone will have to rely on the newly released iCloud service. Apple is said to be aiming for a $400 carrier cost, meaning that carrier subsidies would put the iCloud iPhone at free on a 2-year contract, while the better specs on the iPhone 5 would hit the $200 on a 2-year contract price point. 

The idea makes sense from a consumer perspective: you get a lower cost iPhone that still has solid specs. Trevor's source likened it to the difference between a MacBook Air and MacBook Pro, although that analogy doesn't quite hold up. The one big issue with this idea: there's no iCloud music or video streaming, so anyone who bought this iCloud iPhone wouldn't have any incentive to buy music from iTunes. Rather, they'd go with non-Apple services like Spotify, Rdio, Hulu, or Netflix. If Apple were fine with users having an iPhone that could essentially only store apps, a few gigs of internal storage would be fine. But, having to constantly be syncing music or video to cope with the limited storage seems like an annoyance that goes completely against Apple's philosophies of making everything easier for users. 

However, it is certainly possible that there is a market segment that doesn't need more than 8 gigs of internal storage. We're just not sold that Apple finds that market particularly worthwhile given that Apple has never been known to aim for the low-end market with the exception of the iPod Shuffle.



1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

If there is no provision for a local iTunes environment (aka local storage on the handset), it won't get past the idea stage. There is a reason why Apple has the highest market cap in the world.

2. dandirk

Posts: 187; Member since: Aug 04, 2011

There are plenty of smartphone users that don't need huge storage because they don't store music and videos... I don't really listen to music or watch anything worth sideloading on such a small screen. 8gb isbplenty for apps. Though I agree it could add confusion to the apple brand and integration they strive for. Lets not forget with tiered service icloud will be more costly now.

6. hawk62

Posts: 320; Member since: Nov 21, 2009

You must be an adroid user. 8 gig for apps isnt really that much. I have over 4 gigs in apps. Hell Rage HD alone is over a gig. You need to know that apple apps are much larger than the tiny little s**t apps of android. The apps on my SGT10.1 are so small its funny.

4. Doakie

Posts: 2478; Member since: May 06, 2009

I lol in the face of iCloud users with tiered data plans. Unlimited is the only way to go. Better start praying that Sprint gets this iPhone.

5. PhoneLuver

Posts: 481; Member since: Jul 05, 2010

If this is true and aimed at the prepaid market, then the cost per MB worldwide would have to drop significantly!! Generally the cost for data are double the contract costs. This just doesn't make sense to me!

7. Attsukballz unregistered

That's the benefit of signing a contract, lower costs all around. If it was cheaper than whats the point of being tied to a carrier when you can keep shopping around for cheaper data rates. Just now T-mobile is going to charge overage rates for its lower 250 mb plan. The other more pricier plans will still get throttled.

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