Feb 14, 2011 13:36 GMT  ·  By

Citing iPhone nano rumors hitting from all over the world (including those from high-profile publications) last week, Cultofmac.com claims to have some exclusive information on Apple’s smaller iPhone - something that “will blow your mind,” the blog says.

Resurrecting reports by Bloomberg, The Wall Street Journal and TechCrunch, the Apple-centric blog recalls rumors that Apple plans to launch a smaller, more affordable iPhone, which the company may sell alongside the iPhone 4.

The blog specifically cites WSJ as reporting that MobileMe is getting an update in June, expanding its “cloud” to allow users to store most of their data and media via the service, noting that it has heard the same thing from its own sources.

According to one of these sources, “Apple has been working on a smaller, mass-market iPhone for a long time.”

In order to finally be able to introduce such a device, “Apple had to figure out a way to strip away some of the components to reduce both its size and cost,” the blog claims to have learned.

By far the most expensive component in the iPhone, memory is done away with in the iPhone nano, the source alleges. “I’m talking strictly storage memory here,” said the source quoted by Cultofmac.

Without only enough memory to buffer media streamed from the cloud, “the iPhone nano will pull ALL it’s content from MobileMe,” reads the report.

The Cult explains that users buying a movie or a TV show on iTunes can immediately stream it to their iPhone or iPad, and that the service is based on technology developed by Lala.com, a company acquired by Apple last year.

The phone will also run a different variant of Apple’s mobile operating system, according to the source, who reportedly said, “It would be a mostly cloud-based iOS.”