Apple is working on new versions of the iPhone that are aimed at slowing the advance of competing handsets based on Google’s Android software, according to people who have been briefed on the plans.
Apple working on cheap iPhones to counter Android | Google Android Blog
Seems Apple is copying a note from Android's playbook: Make a range of devices; and one size does NOT fit all.
Last time Apple copied someone else, they were in the losing position in the battle of Mac vs. PC. And then, they tried it again in Mac. vs Linux. We saw the end result of both of those battles.