If the price is going to be $330 why bother?
They could easily sell the iPhone 4 for that price this year, and I'm sure the 4 will look far classier than some cheap plastic phone.
iPhone 4: $299
iPhone 4S: $399
iPhone 5: $549
iPhone 5S: $649
There are plenty of people that will still buy the iPhone 4, especially in parts of the world where the iPhone isn't popular because of price. The 4 is still far better than most low end smartphone.