AppleNApps has merged several existing rumors, and is reporting that Apple will be introducing a new low-cost iPhone in the next few months that will have little on-board storage and will rely on the streaming of content from iCloud. Apple is reportedly referring to the device internally as “iCloud iPhone.”
The report also notes that the next-generation iPhone will be thinner, and will be equipped with the A5 chip that is currently being used to power the iPad 2. The new iPhone will likely use many of the components currently used in the iPhone 4, and will have a minimum of onboard storage, to keep the contract-free price to $400.
Of course, we’ve been hearing rumors of a low-cost iPhone for some time now. However, the flaw in this idea, is that iCloud, as it will be when it’s launched, will primarily be a syncing service, and not so much a streaming service. Perhaps Apple has this figured out, but as it stands, and slowly as Apple is rolling out iCloud, I can’t see an “iCloud iPhone” in our immediate future.
Plus, you have to take into account, the wireless carriers. They would be under significant load at all times, and if the network were to buckle under pressure, then the end-user would be left with a brick instead of an iPhone.
In other words, the infrastructure is being built, but it isn’t quite there yet.
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TAGS: iCloud, iPhone, low-end iPhone

