Apple’s upcoming annual iPhone event has consumers wondering what new product will be unveiled.

One speculation is the creation of a high-end and a low-end iPhone. Typically, when a new iPhone is introduced to the market, the current models move down the scale towards a free-on-contract phone. If Apple introduces an iPhone 5S in September, then the 4S will become the lowest model, and also the only phone in their line up with the old 30-pin port. Therefore, it is believed that the company will replace the 4S model with a new low-end 5C model so that all versions of the iPhone will be on the new Lightning standard. Another reason the company is suspected of creating a low-end phone is to boost iPhone sales worldwide, particularly in emerging countries.

Releasing two new phones puts Apple at risk for cannibalization. Yet, it is believed that there will be differentiation factors between the two models. One is the phone’s material; the 5S will continue to have an aluminum casing while the 5C's will be made out of nonmetal. The other is color. Apple rumored be adding gold to the iPhone 5S color palette, because the color is easy to anodize and because is a highly sought-after color in high end markets.

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