iPhone 4 as budget iPhone??
While I think that the introduction of the 5C was a very wise idea, and will sell lots.. I think Apple is missing out on a clear marketing strategy that they could be taking advantage of..
Take a look at the iPhone 4... places like virgin mobile http://www.virginmobileusa.com/shop/cell-phones/iPhone4-8GB-white-phone/features/ are selling it for $199, basically unlocked. If they can do that, then why can't Apple?
Everyone is talking about how the new "budget iPhone" price is not comparable to the almighty Nexus 4. But this could be. While, admittedly, the iPhone 4's specs aren't exactly up to par with this Nexus, they offer the same amount of storage for the same price.. and the iPhone 4 isn't really slacking on iOS 7 as far as I've heard.
iPhone 4 - $199 unlocked, sold in developing countries or somewhere in the back of an Apple store in the US/UK.. not advertised here as much.
iPhone 4S - Budget option for those in the US (who generally buy on contract)
iPhone 5C - colorful model with the bigger screen aimed at developed markets with teens & young adults
iPhone 5S - flagship
I feel like this would be perfect, and sales would go through the roof. Just a thought. I wouldn't kick the old guy to the curb yet.