Most people got it wrong; like the iPhone 3GS, Apple called the successor of the iPhone 4 the 4S rather than the iPhone 5; but surely the next iteration will be called the iPhone 5.
Another surprise that Apple had for us was the fact that it still kept the old iPhone 3GS in its portfolio, a smartphone that has seen much better days.
The 3GS is a thorn in Apple's side for a number of reasons; firstly it has a slow system on chip, one which is clocked at only 600MHz. Then there's the screen resolution which stands at 480x320 pixels, a quarter of the 960x640 pixel "Retina Display" screen on the iPhone 4.
Then there's the fact that the phone has only 256MB RAM, half that of the iPhone 4, which could make developers lives a bit more difficult given that the amount of usable RAM will always be less than that.
This means that developers will still have to cater for a growing user base of iPhone 3GS users that rely on older hardware, rather than looking forward to an Apple portfolio that only uses Retina Display screens.
When will the iPhone 5 be released then? We believe that the only reason why Apple is still selling the iPhone 3GS is because there are plenty stock around and it wants to get rid of them all.
Once these are gone, expect Apple to revert to a two SKU model as it did before and introduce the iPhone 5 as market conditions demand it (i.e. depending on how successfully rivals perform).