Let's say Apple follow the pattern of keeping the two older models on sale alongside the latest one.
That means this Autumn, we would have the choice between the rumoured iPhone 5s, the iPhone 5 and the iPhone 4S.
This would make the iPhone 4S the only Apple device on sale with a 3.5 inch display. If customers bought this on a two year contract, Apple would be obliged to support the 3.5 inch display for another two years.
The lower-cost iPhone is to replace the iPhone 4S, with its 30 pin port and 3.5 inch display. No more 3.5 inch displays and no more non-Lightning ports in their iOS line-up.
I really would like Apple to release a new phone at this price point. I would like to replace my iPhone 4 but I am unwilling to buy into another expensive contract, nor will I spend over £300 on a two year old device, no matter how good it is. The iPhone 4S looks exactly the same as my current phone and I fancy a change!