So, despite initial grumbling that, aside from a better camera and faster processor, the 4S wasn't much of an upgrade over its predecessor, the current model is obviously doing just fine.
It's easy to see how these specs are carefully crafted to avoid directly clashing with the recently launched E1 (603e) as well: lesser front-facing camera but better processor and display here (presumably).
The 4G LTE (about 10x faster than 3G) will be the primary reason, though the Retina Display, new five megapixel camera, and faster processor will also do damage.