Apple announced their 2013 Fall iPhone lineup today and though details of iPhone 5C and iPhone 5S were almost entirely leaked much before the Apple event today, Apple did manage to surprise us with the iPhone 5C's cost (16GB starts at $99 and 32GB for $199 & no 64GB one). It ended up being not so low cost as everyone (at least most of them, even some Apple experts) expected.
Looks like Apple is going the iPod direction with its multiple models (and an array of different colors) with the iPhone lineup. When everyone was expecting an iPod Shuffle's equivalent iPhone 5C, Apple just released an iPod Nano's equivalent iPhone 5C (does that mean an iPod Shuffle's equivalent iPhone XX is on the way?). Just before the event, Rene Ritchie on the iMore show wisely mentioned that Apple traditionally expands its potential market gradually and not drastically. So if the iPhone 5C costed around $350 as everyone (including myself) had predicted, first of all it would have been impossible for Apple to make a premium looking, unapologetic (Johny Ive's word) plastic iPhone that has the same great internal guts of the iPhone 5 and it would have meant that Apple opened up the iPhone to an exponentially larger market, all too sudden for them.