Firstly, I never said they would have the same names. I actually do believe that they will have different names (Incredible 2, Incredible 2 4g).
Making two phones actually does make a lot of sense. I think you are just looking at short run which you take into account diminishing marginal returns after another is released. The long run, for a phone released now, doesn't take this into account and serves to gratify a broader, lower scale market of 3g users, as compared to the more expensive and faster LTE.
There is more profitability in twenty 3g users and five 4g users as compared to fifteen 4g users.
Manufacturing costs are EXTREMELY minimal when producing two different versions of the phone. The only difference is swapping out the radio which will not be as costly as manufacturing a completely different phone.
People assume that everyone is going to rush out and buy LTE phones and pay the extra data fee, but this is in fact not true. As I stated before, LTE isn't implemented in the majority of the US, where 3g is, so people are not going to be as willing to spend the extra money and Verizon acknowledges this. Thus, offering a 3g version will expand to a much bigger market of 3g users and isn't just focused to the domain of 4g users, and will continue until Verizon rolls out LTE to 70% of the US.
Also, I don't know what you're talking about product life cycle? This will still be selling even when a 4g version is out, so there is no reason to rush. Also have you not seen that there has been $0 spent on marketing for this phone as of now?
So yeah, two phones :blush: