You're not understanding what I'm saying - everyone just keeps assuming that this will be an iPhone, just cheaper (same basic functionality, just cheaper). It won't be. Apple doesn't make the same product only cheaper, look at the iPod lineup, or the Mac lineup - each product is radically different from the other members of the family. Why would they change this with the iPhone family, because they all of a sudden started misunderstanding product positioning?
Apple is excellent at product strategy, and what I'm saying is that this phone I think will surprise people, and we may just find that, for example, it's a data-only SIM phone that will utilise cloud services, and that any such traditional cellular contract won't apply to this product. Imagine this phone is the device that starts to break up this choke hold the telcos have over phones and the entire industry in the US, now that would be quite interesting, no?
The market in the US is so different from other countries, all these assumptions simply don't apply outside the US (this contract hubble-bubble, diddle-faddle nonsense). Imagine it's nothing at all do with that. Doesn't that seem more like Apple than launching a "me too" product (even though the original is their own) into a lower-priced market segment? I think we're all going to be in for a fun surprise if this phone is real. Can't wait to see.