Rumor: iCloud iPhone to be launched with iPhone 5?

The rumor mill surrounding the next version of Apple's iPhone device continues to heat up the Internet. The latest such rumor comes from ApplenApps.com which claims via unnamed but "three independent sources" that in addition to a more traditional iPhone 5, Apple also intends to launch an "iCloud iPhone" that will use the company's recently launched cloud computing service.

This iCloud version of the iPhone will be cheaper than the iPhone 5 because it will have less on-board Flash storage than the regular iPhone. It will use the iCloud service more extensively to store files, according to the story. It will also use many of the same parts as the current iPhone 4 which should also make the phone itself cheaper. The story claims that Apple plans to sell the iCloud iPhone for $400 without a contract. That should allow wireless carriers such as Verizon Wireless and AT&T to offer the phone for a very low price with a two year contract, possibly for free. The article also claims that Apple is planning for a late September launch for both iPhones.

There have been rumors in the past that Apple has been developing a lower cost version of the iPhone to sell to developing countries. Meanwhile most people believe the iPhone 5 will have the same dual core chip inside the current iPad 2. There are also rumors that the iPhone 5 will have a thinner case design than the current iPhone 4. We should learn more later this fall.

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