It sounds like they're talking about two NEW phones plus the existing iPhone 4 = three iPhones. I'm not sure what they think the pricing will be. Normally there's a $100-150 gap between the current iPhone and the previous version. That's roughly $500-600 unsubsidized price. The 4+ is supposed to be "midrange", so I'm guessing they mean $300-400. I don't see Apple selling some thing that's 4-plus for less than the stock iP4.
We now expect two new
iPhones. Our research indicates that there will be an iPhone 5 based on a lighter, thinner form factor that is GSM + CDMA capable, i.e., a "world-mode" smartphone. A second device (4-plus) based on the current iPhone 4 but with some minor improvements could target the midrange
and focus on China. As for the current iPhone 4
, we expect it to subsume 3GS as the lower-end offering
So to break this down again, the new iPhone with iP4 taking the 3GS's place was expected from the beginning. This 4+ phone is the only "new" idea and that rumor has been around for a while also. Basically this analyst is saying nothing new.