iPhone mini to have no internal storage

Sources close to CultofMac has informed them that the mini version of iphone will have no internal storage it will based on entirely next generation of storage technology “cloud-based content”.Iphone mini will be cheaper $200 without requiring a service contract.it will be 1/3 time smaller than existing models.
.. Apple had to figure out a way to strip away some of the components to reduce both its size and cost.
Apple decided to lose some of the memory, which is by far the most expensive component of the iPhone (up to one-quarter of the device’s cost, according to iSuppli estimates).
By “some” of the memory, we mean ALL of the memory. The iPhone nano will have no memory for onboard storage of media, our source says. It will have only enough memory to buffer media streamed from the cloud.
“I’m talking strictly storage memory here,” said our source.
The report also adds that iphone mini will have some sort of on-board storage for the operating system,and system caching,Other than that,it will have a new MobileMe service for uploading and streaming content.
The device cannot surely come without any memory — what about the operating system and critical system data?
And what about pictures and movies taken by the iPhone, assuming it has a camera? No onboard memory means photos and video will have to be streamed UP to the cloud, and presumably in real-time.
According to Bloomberg Apple will unveil iphone mini in the middle of this year,Which is around the same time iphone 5 will released.
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