Refreshed internals, lower price point possible.
50% of iPhones Brought to Genius Bar Have Never Been Synced
This is a big reason, according to this birdie, for why Apple Store Geniuses are excited about iCloud.Apple's iCloud, with automated wi-fi sync and instant backup to the cloud will be a welcome feature for those millions who never sync or backup their current iOS devices.
Backupophobes can get away with never touching iTunes after activating an iOS device. But folks obviously need to plug them into some kind of power source to recharge which, combined with a reachable WiFi network, is what triggers iCloud's automatic backup feature. Sure, these customers can manually reinstall apps one by one from the store, but they have no way to recover any of their data or media purchased on the device. That holds true for contacts, too, if users didn't sign up for MobileMe or even Google's free (and, in my experience, terrible) contact sync.