Apple will launch free iCould a longside the iPhone5

Lot of reports and rumors related to iPhone 5 till now some about date of release and other about design and how it will look like and others about features,The latest rumor was today we knew that Apple is planing to release a new free iCould alongside iPhone 5 !!!

This second, low-cost iPhone would tie heavily into Apple’s iCloud service for streaming and syncing data, and the device is rumored to consist of cheaper parts combined with current parts in the iPhone 4.

AppleNApps is claiming that it has been in talks with three independent sources familiar with the matter.

More than anything, AppleNApps’ report echoes the months of iPhone Nano/Lite rumors we’ve been hearing. A growing pile of rumors and reports have pointed towards a second iPhone model release this year, and AppleNApps seems to think that this device will be Apple’s main focus at its next media event.

“It has come to our attention that Apple is planning to combine iOS 5 and iCloud with a piece of hardware internally referred to as the iCloud iPhone. The iCloud iPhone will rely heavily on Apple’s new cloud based offering, and less on internal storage.

Apple is planning to hold a special event to launch the new iPhones, and the sources agreed that the iCloud iPhone will be the big takeaway from the event.”

The iPhone 5 is expected to be a significant upgrade, with a new processor, faster memory, better camera, and possibly larger a display. To get a good idea of what the iPhone 5 will be like, check out this rumor roundup video.

While the iPhone 5 will be the upgrade we all expect, AppleNApps believes that the iCloud iPhone will steal the show. It also believes that Apple has the ability to easily offer a free, carrier subsidized iPhone with a two-year contract.

“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.”

To top it all off, AppleNApps claims that this second iPhone model is the very reason that Apple pushed back its iPhone announcement to this Fall. The site’s sources also say that the iCloud iPhone will “share similarities” with the MacBook Air, and that the device will allegedly look like a “small iPad” with a curved, aluminum back.

We’re skeptical of Apple releasing an iPhone that totally relies on iCloud’s backbone. iCloud is still unproven tech, and the service itself seems to focus more on syncing data, not streaming. Not to mention the stress that a totally cloud-based iPhone would place on carriers.

Apple has yet to show that iCloud posses the ability to serve as the iPhone’s storage backbone, but it’s entirely possible that such capability could be introduced alongside new hardware next month. Apple has made it clear that it doesn’t want to be “just for the rich,” so only time will tell if a free iPhone running iCloud is the remedy for Apple’s price tag problem.

What do you think? Will there be an iCloud iPhone this Fall?

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