Apple new 2011 iCloud iPhone 5: Release Date and Price

There has been much speculation over the possibility of Apple new Low-cost iCloud iPhone alongwith iPhone 5, to compete in markets where the Apple iPhone, being too expensive, had low success rate.

It seems that finally, Apple is set to launch iCloud iPhone this fall, alongwith the new Apple iPhone 5. 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 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.

Apple is going to do this by using less on board Flash memory which are also falling in price. When looking at the iSuppli cost breakdown of the parts of the iPhone 4, the storage accounts for 15% of the cost to build the device, and that's true for the 3GS as well. Reducing 15% of the cost across millions of units is a substantial savings.

The iCloud model will be for users who will want to use the iCloud heavily for storage, and keep a lot less on the iPhone itself. This will also help Apple make iCloud a feature by itself and reason to use the entire Apple ecosystem. The iCloud iPhone will rely heavily on Apple’s new cloud based offering, and less on internal storage.

Apple new 2011 iCloud iPhone 5: Release Date

Apple new 2011 iCloud iPhone 5 is slated for a September or October Release alongwith Apple next regular iPhone version 5.

Together with iOS 5, there are two Release Dates floating around for the launching ceremony of both devices, September 07, 2011 and an Early October 2011 as forecasted by John Paczkowski on AllThingsD, an October iCloud iPhone 5 launch is more likely.

Apple new 2011 iCloud iPhone 5: Price

Apple is aiming for a final price of $400 for iCloud iPhone. However, the carrier subsidization are expected to 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.