If you’ve been following the news recently you must have heard all the speculations regarding a cheaper iPhone. Some say it will look exactly the same but use cheaper materials while others talk about different internals.

According to the latest Apple rumors, the next “cheaper” iPhone will actually be the “iCloud iPhone”. This information is claimed to be real by “three independent sources” “who are familiar with Apple’s iPhone plans” and have talked to Apples’n'Apps. So the iCloud iPhone will probably feature less on-board memory which will purportedly make it cheaper, around the $400 price tag, which would result in carriers offering it for free on contracts.

The iCloud iPhone will allegedly sport approximately the same internals as the current iPhone 4 and, with reduced memory, cheaper aluminum back and side plates will offer a budget alternative to the high-end iPhone 5. To make up for the smaller amount of memory, the iCloud iPhone will rely on Apple’s cloud offering which will launch together with iOS 5.

Source: Apples’n'Apps

Via: PhoneArena