> Will it be such a big deal though? Currently people are swapping out their phones for another model that's exactly the same but with a different number at the end of the name every 12 months.

I don't think they do that at the low-end (nor the high-end, though that doesn't matter here - higher-end manufacturers have a small margin they can eat into). People on the low-end phones want a new phone, they just cannot afford it!