Apple Reportedly Readying An "iCloud Phone" That Will Cost Nothing After Carrier Subsidy

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Photo: Associated Press

When Apple announces the iPhone 5, it will also be announcing something that’s being called the “iCloud Phone” inside of Apple, and that’s going to be the real show stopper, Trevor Sheridan at Apple’N’Apps reports.The iCloud phone will be an inexpensive iPhone that will cost nothing after a subsidy from carriers. Apple is hoping to lower the cost of building it to $400.

Sheridan basis his report on three sources who work closely with Apple. This isn’t the first time we’ve heard such reports. For a while now rumours and reports have indicated Apple is ready to release a cheaper iPhone to fight Android in the low end of the market.

┬áHere’s the key paragraph of his report:

One of our contacts is familiar with the design of the iPhone 4, and says that Apple is cutting the cost of making an iPhone 4 without sacrificing any of its qualities. The main cost cutting will come from Apple reducing on board storage, using a smoother yet cheaper aluminium back and siding, and already having a majority of the supplies on hand. The result will be a cloud based iPhone experience that is unique in the market that will be accessible to a large percentage of users because of the price point.

Read the whole thing at Apple ‘N’Apps >

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