It seems that Apple iPhone nano leaks are springing forth all over the place, as new info from the Cult of Mac suggest that the rumoured iPhone nano will be going cloud-only - losing it's built-in memory in the process.

We brought you news recently of the mini iPhone, rumoured to be coming in around half the size of the iPhone 4, along with word of an updated MobileMe service which would be free and feed the new iPhone with content.

And although streaming was always going to be a big part of the new setup, it turns out that reports are suggesting that the iPhone nano will be stripped down receiving only enough memory to buffer media streamed from the cloud.

According to the Cult of Mac source, “It would be a mostly cloud-based iOS,” which ties up with Apple wanting to cut costs to the end user as the memory is apparently one of the most expensive components.

They continue: "I’m not 100% sure on the amount of memory available for the user, I know there is some memory but it acts more like the memory on the AppleTV. There is some there, I’m just not sure how much”.

If these rumours are true there are still plenty of questions that need to be answered in terms of how the phone will function, as the OS itself needs sufficient memory to function and clearly you'll need to be near some kind of connection all of the time if you're going to get hold of your photos, videos and games - so it could end up alienating many potential users.

Watch this space.