Rumors of the so-called "cheap" iPhone came to a head in the months leading up to Apple's September 10 media event in Cupertino—a rumor that ended up coming true on stage, at least on paper. As Phil Schiller unveiled the new, lower-cost iPhone 5C, he explained its specs: "The iPhone 5C comes with everything from the iPhone 5, and more."
That is to say that the iPhone 5C is essentially an iPhone 5—the phone Apple introduced in the fall of 2012—but in colors. It's also slightly lighter and thicker than the iPhone 5. The 5C will have the same four-inch 1136×640 display as the iPhone 5; it will have the same A6 processor, as well. The 16GB and 32GB options will remain the same, it'll still have 802.11n, it'll still have the iPhone 5's 8MP camera, and so on.
In this case, the true new iPhone is the iPhone 5S, the 2013 version of the device that actually comes with a few upgraded features. Notably, it comes with a fingerprint scanner built into the Home button so as to bypass the need to type in a PIN or passcode. (I'm just gonna go ahead and pat myself on the back for calling that one in July of 2012.) The device also comes with an upgraded camera in the form of a five-element lens and bigger pixels, a "motion co-processor" that Apple plans to use to get in on the fitness gadget territory, and of course, the new 64-bit A7 processor. Did we mention that there's a version with a gold back?