The low-cost iPhone Apple may be launching this fall is internally known as the iCloud iPhone and the it will allegedly offer a cheaper option at the expense of most of its flash storage. The iCloud-based phone is further described as using many of the same parts as the iPhone 4 and iCloud hardware will supposedly use an aluminum back panel like the iPad 2’s, since the iPhone 4’s glass is a more expensive option……………
Apple is planning to combine iOS 5 and iCloud with a piece of hardware internally referred to as the iCloud iPhone, will rely heavily on Apple’s new cloud based offering and less on internal storage. Apple intends to launch two iPhone models in the fall with a full upgraded iPhone 5 as expected, as well as a cheaper iPhone which will be the iCloud iPhone. Apple is planning to hold a special event to launch the new iPhones and iCloud iPhone will be the big takeaway from the event. One person familiar with the matter indicated that there are indeed two distinct models currently in production. The iPhone 5 is expected to align with existing rumors to be thinner, faster and lighter similar to the upgrade for the iPad 2. The A5 chip that powers the iPad 2 will be on board as well as Qualcomm’s wireless chip allowing for GSM and CDMA to be in one model. There will be a new design that will offer small changes in response to the antenna problems of the iPhone 4 design. One source indicated that 4G LTE will not be included because the first-generation LTE baseband processor and supporting chipset would require Apple to increase the size of the printed circuit board which conflicts with the thinner and lighter mindset.
The iPhone 5 will be a quality upgrade, but the star of the show will be the cheaper iCloud iPhone alternative. Apple wants to offer a lower priced iPhone while still maintaining their industry leading profit margins. Apple is going to do this by using less on board Flash memory which are also falling in price. 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.