iPhone Nano Could Bring Cloud-Based iTunes

Reports of Apple creating a smaller and more affordable iPhone started popping this week, but what’s more interesting is a report by Cult of Mac which has details on how Apple is going about accomplishing this.

Besides doing away with the home button, they had to figure out other ways to reduce the device’s size and cost. It looks like the solution was to get rid of the internal storage. According to their source, the device would depend heavily on cloud storage using technology from LaLa.com, who Apple acquired and shut down last spring.

“I’m talking strictly storage memory here,” said our source.

The iPhone nano will pull ALL it’s content from MobileMe. When users buy a movie or TV show on iTunes, it’s available to stream to their iPhone or iPad.

These iPhone Nano rumors seem to indicate that the elusive iTunes-in-the-cloud service that many have been looking for will actually come to pass. An iPhone with no onboard storage which depends strictly on the cloud will have severe limitations, but these potential drawbacks may be worth it for many.

via Cult of Mac