The iCloud is Apple's Internet-based data and content storage included with the pending release of iOS 5: photos, documents, music and so on can be stored there and accessed from iOS devices, as well as Mac and computers. [see PC World slideshow: ""]

The cheap iPhone will cut costs even further "supposedly" because it will return to the aluminum-back casing instead of the current, more expensive glass case.

In fact, it might be so cheap it will be free! Apple is said to be aiming at a $400 unsubsidized price tag, some $200 less than an unsubsidized iPhone 4 currently costs. The device might then be completely free on a carrier contract, something Apple has never before attempted.

A silence falls over the industry, as Apple CEO Steve Jobs, dressed in faded jeans and black turtleneck, steps into the spotlight. A hushed voice over the speakers: "Ladies and Gentlemen, Steve will now attempt something Apple has never attempted before: to sell an iPhone for free." The audience, on the edge of their seats, gasps. In the electric silence, Steve begins a Zen and raises his arms ... a woman's voice cries out, YESSYESS! Steve, I'll buy it! I'll buy it!" The crowd roars.

The iPhone 5 will go on sale in Russia in November.