I was in the Verizon store for almost two hours yesterday afternoon. Here was the dialog overheard.
Verizon employee: Welcome to the Verizon store, may I help you.
Customer: Yes, where is the new iPhone to look at.
Verizon employee: They are over there, points in direction.
Customer: Okay, are there any left in stock?
Verizon employee: Yes, but they are limited in 16GB capacities.
Customer: Goes to look at iPhone. Looks underwhelmed. Talks with other customers about it looking about the same as old iPhone. Also talks about the screen being smaller than imagined, iOS looking the same and data plans.
Customer and/or Verizon employee: Where is the Samusung Galaxy S3 to look at? We have the Samsung Galaxy S3 which is popular and has a bigger display.
Customer: Looks at Samsung Galaxy S3. Ask questions. Plays around. Decides to buy one.
Saw it happen literally 10-15 times. I'm sure the iPhone is going to sell well, but it's all about the screen now. In general, people just want bigger phones. So I think after the hype wears down, the iPhone will just be another phone. Especially after Google releases a new unlocked Nexus for $349 and the new Note comes out.