> The main idea is that the iPhone nano would rely on the cloud to such an extent that the device wouldn’t really have *any* local storage to speak of, outside of a streaming buffer. This would of course go hand in hand with a MobileMe / Lala-powered streaming music service, and result in significant component cost savings (flash memory is still pretty spendy).
via [engadget.com](http://www.engadget.com/2011/02/14/the-iphone-nano-to-forgo-local-storage-common-sense-says-no/)
Do people actually use their phones everyday? Anyone in San Francisco or New York City will tell you that an iPhone with no storage is a useless brick. There are simply too many places where you don’t have adequate coverage to keep even an audio stream going.
Besides, streaming everything over the air would INCREASE the cost of ownership of an iPhone, because you’re paying for data by the Gigabyte. If Apple wants to make iPhone more affordable, taking out the storage would literally be the dumbest thing it could do.
Flash RAM is not a cost saver for Apple, anyway. They get RAM cheaper than anyone on the planet, because they buy so much. So yes, this phone will probably have LESS RAM, mostly to save space, but it will almost certainly not have less than 8GB.
