Apple Rumored to Release an iCloud iPhone

If you’ve had enough of those iPhone 5 rumors, you might see this news coming from AppleNApps as entertaining, or even intriguing, depending how you look at it.

According to the site, Apple is set to release a free, iCloud-based iPhone along with the iPhone 5 release, sometimes next month…

“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.”

This somewhat ties in with our source who claimed Apple was going to release 2 different iPhone models this year, which we called a Normal and Pro version. The Normal version might very well be this iCloud iPhone.

With iCloud set to officially launch with iOS 5 soon, there is no doubt that this technology will play a larger role in the way we use our iDevices. But does that mean that a future iPhone can be totally cloud based? I doubt it.

Just like MacRumors remarks, iCloud is more of a syncing service than a streaming service:

“One potential flaw in the idea that Apple will be introducing a cloud-based iPhone in the near future is related to Apple’s implementation of iCloud, which is much more of a syncing service than a streaming service. Apple has presented iCloud as a distributed system in which a master copy of any given file resides in the cloud but is also duplicated on each device and kept in sync with that master copy, which itself can be updated based on changes made on any associated device.”

Besides, with carriers like Verizon and AT&T putting an end to unlimited data plans, I can’t see how this model would work with a phone that is solely relying on cloud services to get its content. But who knows, Apple has more than one trick up its sleeves and maybe the brains of Cupertino figured out a way to make this work.

Do you think Apple could release an iCloud iPhone?