Apple Working on an iCloud iPhone

The iPhone 4 has been on the market for just over a year now and the iPhone 5 rumors mills are in full swing. The next iPhone is likely due out some time this fall, and speculation is running wild on its possible features.

Neowin has several sources that re repoting Apple plans to release 2 iPhones this fall, not 1.

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.

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. According to our sources, Apple is going to do this by using less on board Flash memory which are also falling in price.

Before you get too excited you might want to know that a similar rumor cropped up last year. At that time it was  just an iPhone that had no Flash storage (the iCloud hadn’t been announced yet), but that rumored iPhone was pretty much the same as the iCloudPhone. Now, some might take that older rumor a an encouragement, but I decline to read anything into it. Just because the same idea has cropped up twice doesn’t mean it is any more true than before.