A Budget iPhone? Am I Missing The Point?

Rumors of a budget iPhone or “cheap iPhone” as I have seen it coined, are spreading like wild fire. But why? What is really going on here? I always thought the budget iPhone was the last generation model; for instance, the iPhone 4S can be had for damn near next to nothing. Lets not forget about the iPhone 4, although its old, and pushing the limits in terms of acceptable performance by today’s standards, its still a beautiful looking “old phone.”

To add even more confusion, this notion of the old iPhone being the best cheap option is not something that needs to be marketed to consumers. People will pretty much seek out and settle for the “not the latest, but it was really hot last year” iPhone. Especially since Apple’s incremental feature update habits has made newer versions of the iPhones feel like less of a giant step.

So, what is it? Does the fruit company see troubled seas ahead? Is this a ploy to increase margins? Is this a ploy to take over the largely untapped developing countries? Is this an attack on the mid range Android devices? Would I be crazy to feel as if anything but “Premium” from Apple takes away from any advantage the brand has? Talk to me! What is it?!