Apple's Low-Cost iPhone to be an 'iCloud' iPhone? - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Apple's Low-Cost iPhone to be an 'iCloud' iPhone?

Tying together a series of earlier rumors, AppleNApps claims that Apple is planning to introduce a new low-cost iPhone in the coming months that will contain significantly reduced onboard storage and instead rely primarily on streaming content from the company's new iCloud service. The device is said to be referred to internally as the "iCloud iPhone".

We have three independent sources contributing to this report who are all connected to Apple in different capacities. The main takeaway is that 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.

According to the report, the iPhone 5 will indeed appear in a thinner form factor carrying the A5 chip that debuted in the iPad 2 earlier this year. But the iCloud iPhone will rely on many of the components currently used in the iPhone 4 and offer only a bare minimum of onboard storage in order to drop pricing to $400 off-contract or free with a two-year contract.

One of our contacts is familiar with the design of the iPhone 4, and says that Apple is cutting the cost of making an iPhone 4 without sacrificing any of its qualities. The main cost cutting will come from Apple reducing on board storage, using a smoother yet cheaper aluminum back and siding, and already having a majority of the supplies on hand. The result will be a cloud based iPhone experience that is unique in the market that will be accessible to a large percentage of users because of the price point.

Rumors of a low-cost iPhone have been circulating for quite some time, and claims of a smaller, cheaper iPhone relying on cloud streaming instead on onboard storage appeared earlier this year.

iphone icloud abbey road
One potential flaw in the idea that Apple will be introducing a cloud-based iPhone in the near future is related to Apple's implementation of iCloud, which is much more of a syncing service than a streaming service. Apple has presented iCloud as a distributed system in which a master copy of any given file resides in the cloud but is also duplicated on each device and kept in sync with that master copy, which itself can be updated based on changes made on any associated device.

The vision of a cloud-based iPhone with little onboard storage would require that that master copy be passed down to the device only as needed, functionality that Apple has not yet shown with iCloud and iOS 5. Aside from any technical considerations for the streaming model, such an arrangement would put significant strain on wireless carriers charged with moving that data down from the cloud every time it is needed.

AppleNApps is a relatively new site which does not yet have a significant track record when it comes to Apple rumors, although it was only off by a day in its predictions of a release for OS X Lion and revised MacBook Air models.

Popular Stories

Black Apple Event Logo

Apple Now Inviting Media to October 28 'Launch Experience'

Thursday October 15, 2026 4:13 am PDT by
Apple has begun inviting selected members of the media to a product launch experience in Los Angeles on Wednesday, October 28, according to Bloomberg's Mark Gurman. In a post on X, Gurman described the gathering as an "all-day product launch experience" for touchscreen MacBooks, a new iPad mini, and Macs equipped with M6 chips. Gurman previously reported that Apple would introduce the...
iPad mini 7 Review Thumb 1 sans text

Oops, Apple's Website Just Hinted at iPad Mini 8

Thursday October 15, 2026 5:27 pm PDT by
Apple has an unreleased iPad mini Smart Folio listed on its French regulatory website, hinting that a new iPad mini is coming. The case's A3632 model number doesn't match current or past iPad mini cases. Apple appears to have added the case to its website recently, and it's listed alongside iPhone 18 Pro accessories added in September. The listing doesn't include any iPad mini specs, but...
iPhone Duo Compromises Compared to iPhone 18 Pro Feature

iPhone Duo Compromises: Everything You Have to Give Up

Wednesday October 14, 2026 9:08 am PDT by
Apple's $1,999 iPhone Duo asks buyers to pay more for a folding screen while accepting almost 40 compromises compared with the iPhone 18 Pro and iPhone 18 Pro Max, spanning camera capabilities, everyday usability, and ownership costs. At equivalent storage capacities, the iPhone Duo costs $800 more than the iPhone 18 Pro and $700 more than the Pro Max. Its main attraction is a radically...

Top Rated Comments

198 months ago
How does this rumor make any sense?

1) iCloud does not interface with Windows.
2) The purpose of a low cost phone is to tap the developing markets, which are largely prepaid. Very few prepaid services offer reasonable data plans.
3) 3G internet speeds are not sufficient for vast amounts of media streaming.
Score: 21 Votes (Like | Disagree)
dukebound85 Avatar
198 months ago
In the era of data caps, this would not appeal to me

Plus I use my iphone for both as an ipod and a dedicated gps with maps on the device so this would not work well in that regard.
Score: 19 Votes (Like | Disagree)
Stella Avatar
198 months ago
Maybe cheap up front but requires expensive data plans.

yes, you could use wi-fi, but wifi isn't available everywhere.
Score: 16 Votes (Like | Disagree)
198 months ago
How does this rumor make any sense?

1) iCloud does not interface with Windows.
2) The purpose of a low cost phone is to tap the developing markets, which are largely prepaid. Very few prepaid services offer reasonable data plans.
3) 3G internet speeds are not sufficient for vast amounts of media streaming.
"Developing markets" don't buy $400 phones, they buy $20 phones. A smart phone without storage is a dumb idea.
Score: 10 Votes (Like | Disagree)
198 months ago
8gb of flash storage would be dirt cheap for apple, why the hell would they try to reduce the price by doing this? Data prices are insane, flash memory is cheap. This makes no sense. $400 is no deal either. If they can make an iPod Touch for $200, they can make an iPhone for $300.
Score: 10 Votes (Like | Disagree)
baryon Avatar
198 months ago
I don't really care for this cloud thing and the absence of local storage. I want to be able to access my data anywhere, at any time, regardless of whether I have an internet connection and how fast it is.

I don't think there is a need to make a device between the iPhone and the iPod Touch.

It's not Flash storage that makes a device expensive, 8GB of storage today is almost free, and that's plenty for a low-cost iPhone. It's the other hardware that the iPod Touch lacks, such as the better camera, screen, extra sensors, more RAM and 3G.
Score: 8 Votes (Like | Disagree)
Latest Stories
Verizon Will Charge $10 a Month for iPhone Handoff
Verizon Will Charge $10 a Month for iPhone Handoff
4 hours ago
Apple Calls iPhone Duo Demand 'Extraordinary' After Orders Slip to 2027
Apple Calls iPhone Duo Demand 'Extraordinary' After Orders Slip to 2027
4 hours ago
New App Store Rules Target AI Deepfakes and Nudify Apps
New App Store Rules Target AI Deepfakes and Nudify Apps
5 hours ago
Didn't Pre-Order Apple's HomeView? Here's How Long the Wait is Now
Didn't Pre-Order Apple's HomeView? Here's How Long the Wait is Now
7 hours ago
Apple's $79 iPhone Duo Case Sticks On With Adhesive
Apple's $79 iPhone Duo Case Sticks On With Adhesive
7 hours ago
Apple TV 4K and HomePod Mini Price Increases 'Much More Striking' Than New Features
Apple TV 4K and HomePod Mini Price Increases 'Much More Striking' Than New Features
10 hours ago
The MacRumors Show: Was HomeView Worth the Wait?
The MacRumors Show: Was HomeView Worth the Wait?
11 hours ago
Apple Refers to HomeView as 'HomePodDevice' in Legal Document
Apple Refers to HomeView as 'HomePodDevice' in Legal Document
12 hours ago
Apple Pre-Orders Kick Off With First Discounts on HomeView and Apple TV 4K
Apple Pre-Orders Kick Off With First Discounts on HomeView and Apple TV 4K
13 hours ago
Developers Question Scope of Potential Apple Antitrust Settlement
Developers Question Scope of Potential Apple Antitrust Settlement
14 hours ago
iPhone Duo Resold for $5,000 on eBay After Selling Out
iPhone Duo Resold for $5,000 on eBay After Selling Out
14 hours ago
Massive Discounts Hit 2026 MacBook Pro With Up to $800 Off
Massive Discounts Hit 2026 MacBook Pro With Up to $800 Off
14 hours ago
iPhone Duo is Sold Out for Christmas as Shipping Estimates Slip to 2027
iPhone Duo is Sold Out for Christmas as Shipping Estimates Slip to 2027
14 hours ago
Didn't Pre-Order an iPhone Duo Yet? Wait Times Are Significant Now
Didn't Pre-Order an iPhone Duo Yet? Wait Times Are Significant Now
15 hours ago
First Apple TV 4K Pre-Order Discount Arrives at Amazon
First Apple TV 4K Pre-Order Discount Arrives at Amazon
15 hours ago
iPhone Duo Pre-Order Deals: The Best Carrier Offers From AT&T and T-Mobile
iPhone Duo Pre-Order Deals: The Best Carrier Offers From AT&T and T-Mobile
15 hours ago
iPhone Duo Now Available to Pre-Order From Apple
iPhone Duo Now Available to Pre-Order From Apple
15 hours ago
iPhone 18 Pro vs. iPhone Duo Buyer's Guide: Which Should You Choose?
iPhone 18 Pro vs. iPhone Duo Buyer's Guide: Which Should You Choose?
18 hours ago
Apple Store Down Ahead of iPhone Duo Pre-Orders
Apple Store Down Ahead of iPhone Duo Pre-Orders
18 hours ago
Oops, Apple's Website Just Hinted at iPad Mini 8
Oops, Apple's Website Just Hinted at iPad Mini 8
1 day ago
OLED MacBook Pro Won't Get M7 Chips Until Late 2027
OLED MacBook Pro Won't Get M7 Chips Until Late 2027
1 day ago
Apple Pledged $25 Million to Trump's White House Ballroom
Apple Pledged $25 Million to Trump's White House Ballroom
1 day ago
Touchscreen MacBook Pro Could Launch on November 6
Touchscreen MacBook Pro Could Launch on November 6
1 day ago
New Withings Users Must Pay $99/Year for Apple Health Syncing
New Withings Users Must Pay $99/Year for Apple Health Syncing
1 day ago
Meta and Apple Bring Muse Spark Open AI Model to Mac Studio
Meta and Apple Bring Muse Spark Open AI Model to Mac Studio
1 day ago
iPad Mini 8: Apple Has Tested Both 60Hz and 120Hz ProMotion Displays
iPad Mini 8: Apple Has Tested Both 60Hz and 120Hz ProMotion Displays
1 day ago
Apple TV 4K 2022 vs. 2026 Buyer's Guide: All Differences Compared
Apple TV 4K 2022 vs. 2026 Buyer's Guide: All Differences Compared
1 day ago
Apple CEO John Ternus on Early Foldables: 'Kind of Cheap and Crappy'
Apple CEO John Ternus on Early Foldables: 'Kind of Cheap and Crappy'
2 days ago
Greg Joswiak Says Apple Isn't Focused on Making AI for 'Lunatic Fringe'
Greg Joswiak Says Apple Isn't Focused on Making AI for 'Lunatic Fringe'
2 days ago
Amazon Offers $120 Discount on AirPods Max 2, $50 Off AirPods Pro 3
Amazon Offers $120 Discount on AirPods Max 2, $50 Off AirPods Pro 3
2 days ago

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors