Apple Readying An "iCloud Phone" That Will Cost Nothing After Carrier Subsidy
Business + Economy

Apple Readying An "iCloud Phone" That Will Cost Nothing After Carrier Subsidy

Justin Sulivan/Getty Images

When Apple announces the iPhone 5, it will also be announcing something that's being called the "iCloud Phone" inside of Apple, and that's going to be the real show stopper, Trevor Sheridan at Apple'N'Apps reports

The iCloud phone will be an inexpensive iPhone that will cost nothing after a subsidy from carriers. Apple is hoping to lower the cost of building it to $400.Sheridan basis his report on three sources who work closely with Apple. This isn't the first time we've heard such reports. For a while now rumors and reports have indicated Apple is ready to release a cheaper iPhone to fight Android in the low end of the market.

Here's the key paragraph of his report:

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.

Related Links from The Business Insider

Here's Every iPhone 5 Rumor We Know About So Far
More Than One Third Of Consumers Will Buy The iPhone 5
Here Are The Best iPhone And iPad Apps You Missed This Week
How To Get Into TechStars, The Startup Accelerator That's More Competitive Than Harvard
The 31 Best New Tech Founders In NYC