These days, any news followed by the terms “Apple” or “iPhone” tends to come in the form of iPhone 5 rumors. Recently, a new kind of iPhone rumor hit tech blogs everywhere. This one is not about the much anticipated iPhone 5, but it does concern the iPhone 4. When Apple launched the iPhone 4, the iPhone 3GS was created and offered to consumers for free after the iPhone 4 had been on the market for awhile.

Now, with the launch of the iPhone 5 bound to happen soon (sources say in October of 2011), consumers largely expected Apple to drop the price of the iPhone 4 or provide the phone for free, but this wasn’t part of Apple’s plan. Instead of reducing the price of the iPhone 4, there are strong rumors circulating that Apple intends to launch a new iPhone 4 right alongside the iPhone 5.

In Comes the iCloud

Many different sources report that Apple intends to launch an inexpensive version of the iPhone 4 this fall. Then again, it might not be an iPhone 4 at all. The name of the new phone is expected to be the iCloud iPhone. As the name suggests, the phone will run entirely on Apple’s iCloud. The phone will likely have lesser memory (around 8GB), and it is not likely to look like the iPhone 4.

In fact, rumor has it that the new iCloud iPhone will look more like Apple’s popular iPad (in smartphone version, of course). It is possible that carriers will offer the iCloud iPhone for free, since this phone will be a lot cheaper to make and sell. Some speculate that the cost of the iCloud will be around $400, though this is an estimated price that doesn’t take any kind of two or three year contract into account.

Apple Logic

Some wonder if carriers around the world are ready to sell the iCloud. Of course, the notion of this phone is all based upon rumor for the time being, but these rumors come from high sources that are in-touch with Apple happenings. Then again, it makes a great deal of sense for Apple to offer an inexpensive phone that’s easily accessible for consumers of all types.
Many people are willing to shell out hundreds of dollars for a new iPhone.

This is precisely why consumers camp outside of Apple stores on the eve of a new iPhone release. Yet, these consumers are a small bunch. The fact of the matter is that most people cannot afford to plunk down hundreds of dollars on a new phone. This puts Apple out of touch with the mass consumer market.

As Android phones sell like hotcakes, iPhones aren’t selling so quickly. With the release of a new phone that comes with a much lower price-point, Apple may be able to reach a larger consumer market. This is, no doubt, what will happen if the iCloud iPhone is offered to consumers for free. But, how will the rumored iCloud smartphone match up to the Android phones already on the market? Only time will tell, though it seems as though Apple has found a way to appeal to millions of consumers once again.