iPhone sells will suck if this is true.
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I think the cameras make some sense but the Retina display shouldn't come with this update; What will attract new customers to get the phone? (And please don't reply "People will buy the Phone over the Touch because it's a phone"![]()
There are a lot of reasons to forgo the iPhone for an iPod Touch plus a separate phone. My company has a contract with Verizon, giving us a 19% discount. That makes an iPhone unrealistic for me, despite the fact that I think it's a great device.
We should also remember who earns what in this game. Apple gets money from the sale of the device, while ATT gets money from the contract and services. So the bulk of Apple's income is 'blind' to the iPhone vs. iTouch...you buy a device either way!