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Rumor: Apple releasing iCloud iPhone for free

iCloudiPhoneThere are so many loose ends to the coming iPhone release that trying to pin down details is headache-inducing. One particular rumor about a less expensive, pared down iPhone won’t die. We’ve heard iPhone nano and iPhone 4S, and now you can add a new moniker to the mix: The iCloud iPhone.

According to Apple’N’Apps, “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.” The site sources three insiders who have correctly revealed past Apple information.

The iCloud iPhone would cost $400 without a carrier. With a two year contract, however, the subsidized cost would mean a free iCloud iPhone. And if the claims are true, you wouldn’t be working with shoddy materials. The device would have similar internal hardware to the iPhone 4, and have a curved aluminum back plate–it’s supposed to look like a small iPad. This means a cheaper look and feel than the iPhone 4, but that’s to be expected. Such a significant price drop would make Apple a competitor to Android on all fronts. The two mobile operating systems remain hugely popular, but Android’s carrier, manufacturer, and pricing variety mean it’s a viable option for a wider range of consumers. Apple is definitely pigeon-holed in a certain income bracket, for the most part, and a low-priced iPhone seems like a guaranteed success.

If you’re on board with the launch of an inexpensive iPhone but this whole iCloud meets iPhone thing doesn’t quite gel, you’re not alone. ICloud hasn’t even officially launched yet, and from the initial outlook, it’s not so much a way to access data as a way to store a copy of it. ICloud syncs with the respective device to continually update content, so the phone would need to have some sort of flash storage capabilities.

But the concept is interesting to say the least. Whether or not Apple releases an iCloud-dependent smartphone, we’re starting to become more and more convinced a cheaper iPhone is in the foreseeable future.