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You are overestimating how mainstream cares for new models. iPhone is (or at least was) status symbol and personal toy, people don't care much for technical specification or hardware generations.

For example, see how well 3G was selling after 3GS was introduced.



The 3G continued selling well after the 3GS was introduced because Apple lowered the price to $99 with contract.


It continued to sell well outside US too.




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