Lots of commentary on the new design. My ultimate take on iPhone releases is that they are (like other phones BTW, it's not just Apple) fashion inducements. That is, every 2-3 updates they significantly change the look of the device. Change it enough that someone from 10+' away can immediately distinguish the new from the old.
Then it's just a matter of normal sales & marketing... if your brand is powerful, people want to be seen with the latest and greatest from a fashion point of view. There are people who care about the latest & greatest technology of course, but in my experience they are a distinct minority.
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