I'm still struggling to see how Apple are going to release a brand new, large iPhone for US$700. I don't see how an LCD screen and a single camera can justify cutting $200 from the price. It doesn't sit right with me.
If it came with an A10, instead of A12, I could see it then. Otherwise, it seems like it's going to make up-selling to the OLED models very difficult.
Dual-lens (and triple-lens) cameras now separate premium smartphones from regular ones. For Apple, the difference in materials cost between LCD and OLED is $50. That's the most expensive component in the smartphone.
The difference in manufacturing cost between A10 and A12 is literally $0.50 or $1 due to economies of scale. The bulk of the cost of the chip is NRE costs. The chip may cost $300 million to design, but because Apple sells 100 million units, the NRE cost is $3 per chip.
Consumers who are willing to pay $999 for iPhone X already did so last year. Without a significant update, not many are willing to fork out $999 again this year. The $700 iPhone targets the iPhone 6 and 6s holdouts unwilling to pay $999.