iPhone and iPhone Pro.
Is it really Apple like to introduce an inferior product ? Think about it ,if Apple introduces a cheaper iPhone the only advantage it would have over the iPhone is price. It would be an inferior product in all other ways. Apple does not do that ,it has a Macbook Air which is cheaper than the Pro versions but it has it's distinct advantages.It brought in the iPod shuffle which was cheaper but also MUCH lighter and smaller.It brought in the iPad mini which was again lighter and smaller and had more portability. You can't really say that the cheap versions are inferior products because they have their distinct advantages.
Now ,no one is clamoring for a lighter or thinner iPhone ,and no one's moaning about the portability of it either. It doesn't make sense for Apple to introduce a cheaper iPhone which will probably be thicker and have a bad screen ,the only advantage being the price. Others might do it ,but I don't think Apple will offer a lousy product. You can't compare the iPhone (cheaper version) to the iPad mini because Apple addressed issues with the larger iPad with the Mini ,this won't be the case with cheap iPhone.
So I'm not really sold on this Cheap iPhone being a bad product . I think Apple will bring in a premium premium iPhone Pro (larger screen or something) and slash the cost of the current iPhone to around 350-400 Unlocked. I don't see Apple making a thicker ,and non premium feeling product.The 'cheap' iPhone will be akin to the Macbook Air and the expensive iPhone will be like the Pro. I know it isn't a perfect analogy ,the expensive one will obviously not be heavier etc but you get what I mean.