wasn't really a huge success, Apple numbers reveals it essentially cannibalized big ipad sales.
and people attach dollar amounts with size and quality. people will expect a cheap quality iphone to be cheap
They are cannibalizing their own products , right ? It happend before , iPhone cannibalized iPod sales.
Its better to cannibalize their own products rather than ignoring a market.
Small $100-$200 are eating away into the sales of iPad's sales.These are made by lot of unfamiliar companies.Same with smartphones.Companies like ZTE , Micromax etc. are growing very fast and eating into major company marketshares in lot of countries.
We reached to a saturation point right now , Almost every company sold nicely but not as much as analysts or people anticipated but they did sell better than last year.
Apple is not going to use "Race to the bottom" strategy.They are trying to make a phone which is even more affordable than current iPhones.
yes , it will feel cheap but processor will be good one.
I still have my 3rd generation iPod Touch bought in 2009 , runs almost every app except one or two which are too-high-end for the hardware.I can't say same for WP or Android.Most of them don't even run some graphic intensive games from 2011.