... I think the current iPhone will be its high end model, it makes more sense for apple to introduce a lower range model. Smaller device at least but wouldnt know what features they could drop though ...
I keep seeing this trotted out as fact again and again.
( This is a long rant, and it's not meant as any personal attack - this just happened to be the most recent time I saw this particular "fact" quoted. )
Just think about this for a minute - when has any electronic product been released that was both significantly smaller and significantly cheaper than the currently available model?
Making these things smaller costs more, not less. It's not like the thing's just full of gold bullion and if you take some gold out it gets cheaper.
Smaller is a feature, and it's a feature real people pay a premium for. Look at the iPod mini - much more expensive per gigabyte than its chunky sibling, yet it became the most successful iPod model (and, I'm guessing, hence the most successful MP3 player).
Apple won't release the iPhone nano (or air, or whatever) until the base iPhone runs at 32GB of storage at least. Then they'll re-release the iPhone G1 in a smaller case just like they did with the iPod. They might drop GPS, WiMax, Bluetooth modem, video conferencing, world peace and the laughter of a thousand children, or whatever they're shipping as "standard" on the iPhone in 3 years, but think about the iPod again - what features did they "drop" for the mini? I can't think of a one other than storage, and in fact they even introduced a feature (the clickwheel) that was exclusive to the mini. In fact, other than storage, I can't think of much that existed on the G3 iPod that wasn't on the G1.
I maintain that the iPhone is going to follow EXACTLY the same pattern as the iPod. Why the hell should Apple change it? All the naysayers said that the iPod was lame and would fail. Apple was right, we were wrong. Now all the naysayers come out of the woodwork again and tell Apple what they have to do to succeed, and none of them seem to stop to think about what they're saying.
Nothing revolutionary is going to happen with the iPhone for the next 5 years. The revolution already happened: smart phones are now being used by our mums and dads, by our kids, by everyone to whom this stuff (email, web, phone, video, music) is useful, but from whom it has been withheld by crappy user interfaces and mismatched software/hardware direction, driven by a lacklustre industry hell-bent on resting on its laurels.
Again, look at the iPod. With the exception of the iPhone/touch, the iPod hasn't been revolutionary since 2001, yet it's ubiquitous. Same with the iPhone. Expect no surprises - expect only that the user experience will get better and better and that nobody will catch up as the competition is too focussed on "Hey, check it out!! We've got an 8MP camera that automatically syncs with your flickr account!*" (* if you can figure out how the hell to configure it, and if you can trust it not to publish those "private" photos you took for your girlfriend)
Apple will do what it does best when it's on its game - ignore everyone, and then win.