Ok, took a day to digest what is the actual news going to be. Apple and its experience is still not altered. I'm an indie developer doing some iOS development for smaller app development organizations. I dreaded the fact that there is going to be a cheaper iPhone. I was hoping Apple would not go for a cheap iPhone and that I would still be able to continue with iOS development.
The reason developers have to dread for cheaper iPhone is, you will end up getting users who are more tuned to apps that are for free. Why do we have to care about free apps, I have a full-time job and app development is a supplemental income that I def. need and moreover thoroughly enjoy app development. When you end up with a user-base that demands apps for free, then it is very difficult to continue as an Indie developer. It not only drops passion for app development, but it also drops the economy that goes with it. For example, when I look for an app and if that fits my needs and lifestyle, I go the extra step to figure out how to give the app developer more incentive to keep up the work.
Anyway with the new iPhone5C release, Apple has proved that, if a user wants to get into Apple's eco-system they better complement not just the product but also the development community that it is dependent on. Good move and looking forward for the next wave of customers who are going to support app development.