Guessing from your reply you know better than those guys at Apple on what to do. Why not tell us what you would do if you are Tim Cook. Try not to reply the same crap as new products which we all knw sort of.
There is already a generation of kids growing up in the Apple fold using the iPhones which were passed down from their parents. Besides there are plans ahead to make owning the iPhones less painful in India and China.