Either this fall of by 2014 Apple will be selling five different iPhones, including:
1.- the expected 5S or 6 priced at today's iPhone 5, call it X, coming by 9/13
2.- a bigger screen version to be called, perhaps, 5SX (X for eXtra size) or 6X, this may come in 2014, to be priced at X + $100, coming at 3/14
3.- the 5 at X - $100, by 9/13
4.- the 4S at X - $ 200, by 9/13
5.- the 4SP (P for Plastic), or perhaps the 4P, with plastic casing, at X -$300, by 9/13
This scheme will allow Apple to price itself at five different price points, and will leverage its tradition of selling prior year units at lower price.
Disclosure: I am long AAPL.
Additional disclosure: With the confidence of new product coming in 2014, to include not only the 5SX (or 6X), but wither the iWatch or the Apple TV; plus the price support offered by the $50B buy back plan, I will buy more, at least while the share remains below $500