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What Apple needs to do is come out with a new model that is better enough to the previous model so it's worth upgrading to. Not two years down the line. If you have an iPhone 4s, it's not worth upgrading to an iPhone 5. Nor was the iPad 2 a worthy upgrade from the iPad.
Sure, the iPhone 5 is a good upgrade if you are going from an iPhone 3Gs or lower. But if you have a 4s, not worth it and if you have a 4, maybe, maybe not.
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