For the last few months, a rumor that Apple would release two devices this year went around, and to be honest, it seemed to make lots of sense. Apple would release a full-featured iPhone, selling it at the normal full price. The company would also release a watered down version of the iPhone 4 aimed at taking a stab at the prepaid market.

I thought this to be highly believable. If you’ve ever been to Asia or Africa (I have), you’ll know that the prepaid market there is gigantic. This is an untapped market for Apple.

So the rumor mill went crazy on this rumor, and everyone, at some point or the other, seemed to agree we’d see two iPhones this year. John Paczkowski of AllThingsD now thinks otherwise…

In a post published earlier today, Paczkowski cites Wedge Partners analyst Brian Blair. Both believe that Apple has no plan to introduce a low-cost iPhone this year.

When it comes to Apple rumors or controlled leaks, Paczkowski has an outstanding track record. The guy clearly has his sources at Apple, and when he speaks, you want to listen.

According to Blair, the iPhone 5 will sport an A5 chip, an 8MP camera, and possibly a larger screen. It will also look a lot like the iPhone 4. Nothing we hadn’t heard before.

Paczkowski ends his post by quoting Blair:

“We don’t expect a second, dramatically different iPhone to accompany this as we don’t think Apple needs to have 3 models in the market to address the high end, mid-tier and low end since the iPhone 4 (with memory lowered to 8 GB) will drop to $99 and effectively attack those markets.

Why would Apple bump up only the processor specs of the iPhone 4 in addition to a newly designed iPhone 5 if the goal is to sell it into the pre-paid market at a lower cost?

A 4S would simply cost more and a 4S itself wouldn’t create a mid-tier market unless it was priced at $99 and the iPhone 4 went to $49 with the new iPhone at $199. We see this scenario as unlikely.”

The final word of the post is “agreed.” Something tells me that once again, Paczkowski has some insider information. I’ll put my money on him.

You?

  • It makes sense that the 4S = iPhone 5. That’s exactly what the 3GS was. A speed bump. Anyway, I’ll wait for an LTE iPhone.

  • We could have a situation where Apple quits selling iPhone 4 and starts selling an iPhone 4s instead, at $99.
    That would be pretty agressive but I’m afraid it would also leave iPhone 5 with few selling points…

    Either we’ll be seeing some mind-blowing features in iPhone 5 or we shouldn’t expect two new iPhones.

  • Rehan Ahmed

    iPhone 3 got iOS 3,
    iPhone 4 got iOS 4,
    so iPhone 4S cant be the iOS 5,
    if the iOS 5 is coming so iPhone 5 is too…

    • Dylan

      iPhone 3G got iOS 2. 3GS got iOS 3.0

    • Acolz

      iPhone 3? There’s no iPhone 3 dude wake up

  • Rehan Ahmed

    So the iPhone 5 is really coming, don’t know about the iPhone 4S as it is dubbed

    • DH88

      Refer to Dylan’s post. You’re argument is built on faulty logic.

  • Rehan Ahmed

    Don’t know about the iPhone 4S as it is dubbed, but the iPhone 5 is REALLY COMING

    • Jeff

      So you work for Apple then?

  • I really don’t think they can leave 4G capability off the ‘iPhone 5’. They will probably call it the iPhone 4G to make sure people know that it comes with 4G integration. Android will run away with the prize since they are the 2nd, 3rd, 4th most popular smartphones at Verizon and AT&T

  • Rehan Ahmed

    oh, sorry, typing mistake..! 🙂

  • Jay

    there better be something different in terms of design with this phone! it’s been 15 months! They had less time to work on iPhone 4 and look what we got. I’m really really hoping for a better design, or else honestly, Apple is just being lazy. I just don’t understand how they look at its customers and basically say, “here’s a 15 month old device with a better camera, same antenna system and is ‘faster.’ Go spend 200-300 dollars on it!” all this is getting old! just release the damn phone already! and honestly, how can there be supply shortages of glass for a phone that’s already been in production for 14 months? idk all these rumors are getting old.

  • bob

    well if the new iphone looks like the 4 i dont want it…lol i need a bigger screen