Apple to reveal 'iCloud iPhone' this year?

Apple to reveal 'iCloud iPhone' this year?
According to Trevor Sheridan of Apple'N'Apps, Apple is looking to release an "iCloud iPhone" this year, alongside the launch of the iPhone 5.

The iCloud device will use the same parts as the iPhone 4, but with less memory and storage (to save money), and could cost $0 with contract.

Integrated directly into the cloud, the iCloud iPhone will help Apple keeps its 40%+ margins whilst releasing a device that can compete on a price level with low-end Android phones.

Says Sheridan:

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.

According to our sources, Apple is going to do this by using less on board Flash memory which are also falling in price. When looking at the iSuppli cost breakdown of the parts of the iPhone 4, the storage accounts for 15% of the cost to build the device, and that's true for the 3GS as well. Reducing 15% of the cost across millions of units is a substantial savings. The iCloud model will be for users who will want to use the iCloud heavily for storage, and keep a lot less on the iPhone itself. This will also help Apple make iCloud a feature by itself and reason to use the entire Apple ecosystem.

Written by: Andre Yoskowitz @ 11 Aug 2011 14:03
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  • LordRuss

    You know... There'll probably be a line around the building like there was for Star Wars back in the 70s for this thing. Reduced cost of the phone & pre-recorded material, all under the guise of the 'cloud' protecting your investment...

    Let's just say I warned you all about the implications of using "the cloud" and they should have named this thing the i-Clod...

    12.8.2011 13:11 #1

  • llongtheD

    As governments and multi-national corporations become more and more intertwined what could possible go wrong with letting them handle and store all of your sensitive data? Call me paranoid if you like, but this cloud touted for its convenience, is not something I'm interested in.

    If your fish seems sick, put it back in the water.

    12.8.2011 19:23 #2

  • Zealousi

    just something else to make money with. Apple has more money then the US government apparently lol

    12.8.2011 20:09 #3

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