Dilemma: Buy iPhone 4S or wait for the iPhone 5?

Apple's new iPhone 4S comes out Friday morning, and has already broken sales records , with the pre-sale sold out at both At&T and Verizon.

However, stores will have phones in stock Friday for people willing to line up.

But you may want to take a deep breath. After all, do you really need the iPhone 4S, or should you wait for the iPhone 5?

Why you may want to wait

Tech sites and blogs are debating the wisdom of purchasing a new $199 iPhone 4S (with mandatory 2-year contract) in the next few weeks.

After all, it's an upgrade from the current model, but it looks the same and is not considered a game changing device.

Its one big feature, voice recognition software that speaks back to you, is not considered "essential," though it is certainly cool.

But here's the problem: analysts expect an iPhone 5 roll out next summer, and predict that one will be slimmer, and may have a bigger screen.

Remember all those online photos hinting at a new iPhone 5? They may not have been far-fetched, just premature. Many experts say the 5 is already close to production.

Chances are good that you will really, really want the 5. But that will be another $200 (with contract). Ch-ching.

Who should wait, who should buy

MSNBC's gadget blog says if you have the current iPhone 4, you may want to wait for the 5, unless you absolutely have to have the voice recognition feature.

Otherwise you will likely have to pay for a new phone twice in one year: now, and again next summer.

It says the new iPhone 4S is really aimed at people with the old 3GS model (no face time or other key features), or people who currently have an Android phone or still don't have any smartphone at all.

On a budget?

If you don't yet have any iPhone, and money is not freely flowing, your best bet might be buying the older iPhone 4 (not the 4S) because it's just $99 with a contract.

Then consider the iPhone 5 in a year or so.

Money really tight? AT&T will now give you the old iPhone 3GS free with a 2-year contract. If you are feeling better about your finances next summer, you should find a new iPhone 5 waiting with your name on it.

And that way you don't waste your money.
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