We have already heard rumors about a low cost iPhone that Apple would release to target medium range markets. Though, it lost attention sometime ago when iPhone 5 launch news appeared to be more accurate. It seems that Apple still has plans to make it into a reality. If we consider a report from AppleNApps, they predicted that the cheaper iPhone would cost around four hundred dollars which will make it free from a 2 year contract. However, the cupertino based company would maintain this low price by comprising the internal storage of the phone. It means that all of your data would be stored on iCloud, a service unveiled by Apple at WWDC.
In addition to it, the report suggests that Apple would include all the parts of iPhone 4 into the cheaper iPhone since they are easily available in their supply chain. The cost of the internal hardware has been substantially decreased from iPhone 3G to 3GS to 4. On the other hand, iPhone 5 would be comprised of a better camera, flash storage and higher processor. Whereas, the design of cheaper iPhone will be similar to that of iPad 2 containing Aluminum at the back. Also, the steel band would be replaced with curved aluminum which can be seen in iPad 2 as well. The site has compared the low cost iPhone with Macbook Air and iPhone 5 with a Macbook pro to demonstrate a clear picture.