Ultimately, I don’t think consumers are fooled by names, and the press certainly aren’t. What’s more interesting about Apple’s upcoming branding is how they position the cheaper iPhone variant in the lineup. With the iPad mini, the differentiator was screen size, which meant Apple could focus the branding on that distinction rather than its lower price point.
This likely won’t be the case with the cheap iPhone though, as it will use the same 4 inch display as its bigger brother, so Apple can’t use the same trick. It also doesn’t seem to be “lighter” or “thinner” either so adjectives like “nano” and “mini” are also out of the question.
The rumours point to the distinguishing factor being “cheaper” … I think it’s fascinating to see how Apple will brand “cheaper”.