Apple to Release Free ‘iCloud’ Phone Alongside iPhone 5? [Rumor]

Apple to Release Free ‘iCloud’ Phone Alongside iPhone 5? [Rumor]

In the latest series of iPhone 5 rumors, a new report has surfaced that strings together months of murmurs relating to a second iPhone model release this Fall. This time, it’s believed that Apple will introduce a free, ‘iCloud’ iPhone alongside a new flagship device.

This second, low-cost iPhone would tie heavily into Apple’s iCloud service for streaming and syncing data, and the device is rumored to consist of cheaper parts combined with current parts in the iPhone 4.

AppleNApps is claiming that it has been in talks with three independent sources familiar with the matter.

More than anything, AppleNApps’ report echoes the months of iPhone Nano/Lite rumors we’ve been hearing. A growing pile of rumors and reports have pointed towards a second iPhone model release this year, and AppleNApps seems to think that this device will be Apple’s main focus at its next media event.

“It has come to our attention that Apple is planning to combine iOS 5 and iCloud with a piece of hardware internally referred to as the iCloud iPhone. The iCloud iPhone will rely heavily on Apple’s new cloud based offering, and less on internal storage.

Apple is planning to hold a special event to launch the new iPhones, and the sources agreed that the iCloud iPhone will be the big takeaway from the event.”

The iPhone 5 is expected to be a significant upgrade, with a new processor, faster memory, better camera, and possibly larger a display. To get a good idea of what the iPhone 5 will be like, check out this rumor roundup video.

While the iPhone 5 will be the upgrade we all expect, AppleNApps believes that the iCloud iPhone will steal the show. It also believes that Apple has the ability to easily offer a free, carrier subsidized iPhone with a two-year contract.

“Apple is aiming for a $400 final price for the iCloud iPhone as compared to the typical $600 iPhone price, which the iPhone 5 will cost. The carrier subsidization will bring the cost to consumers down to free with a 2 year contract for the iCloud iPhone with the same $199 iPhone cost for the iPhone 5. To achieve the lower cost for the iCloud iPhone, Apple will use many of the same internal parts from the iPhone 4 since they’re readily available in their supply chain already, and have gone down a bit in cost. When looking at iSuppli you can see how the same parts drop in price from the 3G to 3GS to 4.

The iPhone 5 will include many new parts including processor, flash memory, and both cameras. The iCloud iPhone will be using the same internal parts from the iPhone 4, but will use a slightly different external design with an aluminum back panel similar to the iPad 2. Apple will go away from the relatively more expensive glass back panel. Also, the stainless steel band is speculated to be gone with simply a curved aluminum back, again like the iPad 2.”

To top it all off, AppleNApps claims that this second iPhone model is the very reason that Apple pushed back its iPhone announcement to this Fall. The site’s sources also say that the iCloud iPhone will “share similarities” with the MacBook Air, and that the device will allegedly look like a “small iPad” with a curved, aluminum back.

We’re skeptical of Apple releasing an iPhone that totally relies on iCloud’s backbone. iCloud is still unproven tech, and the service itself seems to focus more on syncing data, not streaming. Not to mention the stress that a totally cloud-based iPhone would place on carriers.

Apple has yet to show that iCloud posses the ability to serve as the iPhone’s storage backbone, but it’s entirely possible that such capability could be introduced alongside new hardware next month. Apple has made it clear that it doesn’t want to be “just for the rich,” so only time will tell if a free iPhone running iCloud is the remedy for Apple’s price tag problem.

What do you think? Will there be an iCloud iPhone this Fall?

Related
  • Lorin Pullen

    If there is an iCloud iPhone, free with contract, it will surely kill the 5 in ‘sales’ and be the demise of the traditional iPhone.

  • travisgamedev

    It will cannibalize the $49 3GS sales, but not the big daddy iPhone 5 with 64 GB of memory and a dual core processor like the iPad 2.

  • BigBlenderOfTech

    So basically this is an Apple TV 2 with a screen and camera… and maybe an A5…

  • facebook-100000670318505

    free iphone mummy

  • BigBlenderOfTech

    The idea would be that the 4Cloud(?) wouldn’t be competing with the 5. It’s for people who wouldn’t of bought an iPhone in the first place.   

    For instance, it’s doubtful that the 4i would have RFID functionality but that feature would be likely in the 5. 

    Of course the features in the 4i would be in 5. 

    It would make no sense to do it otherwise. No one is going to buy two iPhones, well, apart from Woz.

  • John Branham

    the dumbest thing i’ve ever heard. I’m fine with a lower end version, but that’s what last gen iPhones are for.

  • Hampus

    “This second, low-cost iPhone would tie heavily into Apple’s iCloud service for streaming and syncing data”
    First, an iPhone that is going to use a lot of mobile data and still be cheap, I don’t think the US carriers would agree with that plan…
    Second, the normal iPhone will be using icloud heavily, it’s kind of the whole point to have icloud tightly integrated with iOS…

    Apple might be going for a low cost phone, but really, they already have one, the 3Gs and in a month or two the iPhone 4, I guess the 3Gs maintained a rather high price though, for whatever reason.

  • Biotechnology2020

    2gb data plan will not work

  • huyett

    “cheaper parts” and “new device” are rarely if ever found in an apple product.

  • TylerHoj

    They could introduce an 8GB and 16GB iCloud iPhone, while give greater options to the iPhone 5 such as 32GB and 64GB options. I don’t think Apple would hint at a “product shift” if there wasn’t something better than just a new iPhone on the way. Besides, a new iPhone isn’t a “product shift” it’s an obvious upgrade. Anythings possible, really. 

  • V10LETBLUES

    If true, this thing is going to be out of stock indefinitely. It’s going to fly off the shelves. It’s basically the rumored iPod touch phone. People will use the data at home or at the office through wifi like they do the iPod touch. With tiered data packages becoming the norm, the data problem will be moot anyway. If true this phone is going to take Apple to a whole other level. I really do need to buy more Apple stock. This is going to be huge.

  • MacGoo

    I predict that this “iPhone nano” will actually be the new iPhone, and the iPhone 5 will be introduced as the “iPhone Pro”. Falls in line with their other products, and adds hype to the spec’d out version, when introducing an entirely new product (like the cloud iPhone) could potentially steal most of its thunder.

  • AdolfHitler88

    HEIL DROID

  • gigaguy

    Hard to believe, if true, that a $199 savings would elicit a buying frenzy. The real cost is in the monthly plans. cut that and maybe, otherwise? I never understood the focus on phone cost, when the plans lock you in to paying over 10x as much money.

  • gigaguy

    Hard to believe, if true, that a $199 savings would elicit such a buying
    frenzy. The money is in the monthly plans. cut that cost and maybe,
    otherwise? I never understood the focus on phone cost, when the plans
    lock you in to paying 10x as much.

  • shucai96
  • lalss94
  • Cold_dead_fingers

    Shit, if a free iCloud iPhone is on the way, I might just get that over the iPhone 5. It sounds very interesting. Of course, in the end I will buy the iPhone 5 but I’ll get the iCloud iPhone for my father so I can play around with it.

  • stevem1981

    Nope.

  • lals9955
  • WVMikeP

    Why do knuckleheads continually come forward with rumors that Apple will cheapen its brand the way others do?

  • zeiche

    I love it when aritcles end with “what do you think?” What do I think? I think there is a big chance Cult of Mac will soon be removed from my list of RSS feeds if they continue to publish this rubbish. Despite publishing rumors, the web site is wrong when what it publishes is wrong, even when weasel words and question marks are included in the story or headline. CoM: Stop wasting your readers time and attention.

  • Tr7fan

    im not into the vanity of paying 600 for a cellphone. walmarts all you can use for 45 a month service is good enough for me. they dont offer iphones but for that 600 i get a years service and a phone

About the author

Alex HeathAlex Heath has been a staff writer at Cult of Mac for three years. He is also a co-host of the CultCast. He has been quoted by places like the BBC, KRON 4 News, and books like "ICONIC: A Photographic Tribute to Apple Innovation." If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Twitter always works too. All DMs excepted.

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