lolkthxbai
macrumors 65816
No, the 4S will be discontinued, following the trend we've always seen. So we'll end up with:
High end: 5S (whatever the current top price is)
Mid-range: 5 ($99 on contract)
Low-end: Budget model (Free on contract)
Seriously, this affects the markup, margin or sales in practically no way at all. All they are doing is nocking the oldest generation model on the head and creating a slightly more up to date, but cheaper to make model that is capable of running the latest OS.
The issue they had a few years ago was that the iphone 3 was still being sold as the latest iOS version was going through beta, only to be dropped and not supported when the iOS update came out. By running the budget model on the newer ARM7 architecture (and with a few other speed boosts) it can last longer without an update. IF they kept the 4S as the budget model it'd be almost crippled this time next year, and definitely crippled 24 months down the line.
I agree with this. I don't think Apple would like to continue selling a device for another year with a 3.5-in screen and they don't want developers having to support it any longer either.