iPhone 5C to replace iPhone 5, iPhone 4S to continue and be low-cost iPhone

A new report claims that Apple plans on replacing the iPhone 5 with the upcoming iPhone 5C and the iPhone 4S will become the low-cost iPhone.

As we get closer to the rumored September 10 iPhone event more details are starting to surface regarding Apple's smartphone strategy. Leaked images and specs of both the iPhone 5S and iPhone 5C have already popped up on several occasions. The iPhone 5S will become the company's latest flagship smartphone, while the iPhone 5C was believed to become the 'low-cost' iPhone, allowing Apple to compete with low-end or mid-range Android smartphones. A new report now claims that Apple will be making an unexpected change to its iPhone family.

A new report from 9to5Mac cites analyst Ming-Chi Kuo, who has an excellent track record with Apple predictions. The analyst claims that Apple will not be keeping the iPhone 5 around for a discounted price as it has done with the latest flagship iPhones, which were sold at a lower price when a new flagship iPhone was announced. According to the report, the company's new iPhone lineup will consist of the high-end iPhone 5S, mid-range iPhone 5C, while the iPhone 4S will stick around and move into the low-end iPhone offering.

"We've learned that the iPhone 5 line will be terminated from 4Q13, while the iPhone 4S line will carry on. From this, we infer that iPhone 5C is launched to replace iPhone 5. In other words, the 5C model will be positioned as midrange. We forecast its retail price to be US$400-500. We expect iPhone 5S, iPhone 5C, iPhone 4S and iPhone 4 will fall into the price ranges of US$600-700, US$400-500, US$300-400 and US$200-300, respectively, in the new product cycle. Since iPhone 4's specs may not be adequate to run on iOS7, we think this line may be terminated," said Kuo.

The iPhone 5C is expected to have virtually the same specs as the current iPhone 5, but will be wrapped in a plastic case that will be offered in multiple colors. There were rumors that Apple was going to use iPhone 5 internals in the 5C, so it could essentially continue to offer the current iPhone at a cheaper price, but give consumers a 'new iPhone' with a different design instead of just lowering the price of the iPhone 5.

As always we'll have to wait to officially hear this plan from Apple, so take this with a grain of salt.

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