Apple’s normal strategy is to sell the last 2 versions of the iPhone for less money than previous, reduce the memory and make them the budget offering. So with the iPhone 5 being sold, the iPhone 4S and iPhone 4 become the budget models respectively.
So leaked rumours of the new budget iPhone which comes in a variety of colours seems out of context. Unless, Apple is ditching the 4/4S completely and offering a cheaper option which is made from plastic but will come in several colours.
Of course, we should all be expecting the iPhone 5S, a phone that looks identical as the 5 but with upgraded internals that is better camera, processor etc.
But what if Apple surprised everyone and launched a plastic multicoloured lower cost budget iPhone and then jumped from the 5S straight to a new designed iPhone 6. With market pressures from other competitors it does need to maintain its competitive edge.