I have a feeling that June will be really a turning point in the Apple strategy in phones.
Its been 6 years after incredible start of iPhone and Apple taking in most of industry profits. However, the rivals are now making comeback so its a time for updating the strategy. I think that so far Apple was going after profits (just like in early days of Macs). However they learned a precious lesson that volumes and market share matter as well and stale OS is not a good way.
I believe that with a mountain of cash (100 billion dollars or so), they no longer feel the pressure to go after profits only and now will turn their eye to volume. its one of reasons for increased push in China and India (and Chinese reaction to try to defend their local market for likes of Lenovo). Going for volume means cheaper phones. But to protect profit margins, also more expensive Premium iPhone will be introduced.
So my prediction that after June they will go after volume and market share and it means really three things
1. Cheap iPhones (rumored to be for prepaid - I don't think it can be limited to that. Plastic iPhones with 3GS style (actually awesome ones), costs 66% of regular iPhone or 399-429 dollars (remember you heard it here), reasonable CPU and GPU. 4 inch Retina, 5 mp iPhone 4 camera module. No LTE, fingerprint protection, NFC. Big hit in China, India and Brazil (where it will produced by Foxconn) and in other developing countries. Basically, big hit everywhere (think Samsung Galaxy Mini). Multiple colors.
2. Regular iPhone 5S. Regular updates (CPU and GPU). 4 inch screen (maybe wider). 649 dollars.13 mp camera. NFC Apple Handshake protocol. Black/white.
3. New, premium iPhone 6. Faster CPU and GPU, regular updates. 13 mp camera, low light, F/2.0, NCF (Handshake, Apple protocol for Near field file transfer and communications), fingerprint protection, 4.85 inch screen superRetina wide screen. Price of 750 dollars. Wide Stereo 3D sound. Premium glass and steel materials. Resembles iPhone 4S on steroids by design and includes some design elements from iPhone 5. Extra long battery life. Built in pressure sensor (1024 levels).
All come with iOS 7, an awesome reboot with iOS.
Multiple resolutions and ratio support.
NFC support and Apple "Handshake" NFC file transfer protocol.
New notifications center.
Live icons for Messages, Calendar, Clock, Weather and others with variable size.
Programmable standby screen.
Multiple region and language support.
New flat design and therefore, increased GUI speed. Fully animated.
And 200 other improvements