It's pretty obvious at this point that Apple will be unveiling the iPhone 5, or whatever it will be called, within the next couple of months. But could they also be prepping an "iCloud iPhone" at the same time?

Rumor has it that Apple is prepping a cheaper iPhone option that would have almost no flash storage. Instead, users would need to rely on the cloud to provide them with music, videos and photos. It would be cheap enough to be available at close to free with a two-year contract.

It's an interesting idea. Would you be into an iPhone with no local storage?

Apple N Apps via Electronista