According to MacNN via Apple 'N' Apps, Apple could be releasing a $400 iPhone san the storage we are typically used and will rely mostly on iCloud and other cloud services.
First, ANA stressed the number of sources they have on this breaking news to validate it. Second, the $400 price point for this iCloud iPHone is exactly in the ball park of how much Apple is willing to let loose an unsubsidized iPhone go for on the market.
The goal is to have to iCloud device leverge cloud computing and allow Apple to save hundreds if not billions in storage cost. To further reduce costs, Apple will be using many of the same components as the iPhone 4. Which leads me to believe that in addition to the iPhone 5 this iCloud device, the iPhone 4 could still be on sale after the iPhone 5 is released.
On top of that, the new iPhones will have upgraded components like the processor and share similar designs. It's said that the iCloud iPhone will look like a smaller iPad while the iPhone 5 will look more like the Macbook Pro. That part is a bit strange to me but we'll see it when we see it.
My concern is the data plans. Just how will Apple deal with the constant needs of the iCloud iPhone to access the wireless network. And Apple cannot completely leave out the storage. I think 2 GB of storage would be the minimum required and 4 GB would be idea in this scenario.
Source: Macnn via Apple 'N' Apps
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