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Apple said that they make iPhoto, iMovie, Pages, Numbers, and Keynote free with iOS 7. I looked in the app store with my device (iPhone 4S) but the apps are not free. So it seems that is only valid for the new devices?

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Yes, those apps you mentioned are free for new devices. ie, activated on or after September 1, 2013.

All five apps will be free if you meet the following criteria:

  1. You have to activate an iPhone, iPad, or iPod touch on or after September 1, and
  2. The device has to be compatible with iOS 7, and you can check our complete list of devices that can run iOS 7, and
  3. You have to install iOS 7, which will be available September 18. Before then, the apps will still have a price tag on them.

Source.

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