Apple has dropped the price of the last generation iPhone, the iPhone 3GS, and is now selling it for $49 with a new two-year mobile contract. This significant price reduction aligns with the recent price drop from AT&T on the iPhone 3GS, making it an attractive option for budget-conscious consumers looking to enter the Apple ecosystem without breaking the bank.

The Strategic Timing of the Price Drop
The timing of this price drop is particularly noteworthy. It comes just before we are expecting Verizon Wireless to announce the Verizon iPhone, which has been highly anticipated by consumers and industry analysts alike. This move by AT&T could be seen as a strategic attempt to lock customers into a new two-year contract before Verizon starts selling the iPhone. By offering the iPhone 3GS at such a low price, AT&T is likely aiming to retain its customer base and prevent a mass exodus to Verizon once the new iPhone becomes available on their network.
What to Expect from Verizon
It isn’t clear whether Verizon will be selling a version of the 3GS as well as the iPhone 4. However, we suspect that it will just be the iPhone 4 that is available on Verizon initially. The iPhone 4, with its improved hardware and features, is likely to be the focal point of Verizon’s marketing efforts. We probably won’t see another iPhone model available on the network until Apple launches the iPhone 5 later this year. This staggered release strategy allows Apple to maintain consumer interest and excitement around its product lineup.
The iPhone 3GS, despite being an older model, still offers a solid user experience with access to the App Store, iOS updates, and a reliable performance for everyday tasks. For many users, the 3GS provides a cost-effective entry point into the world of iPhones, especially when paired with a budget-friendly contract.
Have a look at our article on the difference between the iPhone 4 and iPhone 4S, and also make sure you check out our iPhone 4S review.
The iPhone 4S, which succeeded the iPhone 4, brought significant improvements such as the introduction of Siri, Apple’s voice-activated assistant, and a more powerful A5 chip. These advancements made the iPhone 4S a popular choice among consumers looking for cutting-edge technology. Comparing the iPhone 4 and 4S can help potential buyers understand the incremental improvements and decide which model best suits their needs.
via Slashgear
In conclusion, Apple’s decision to drop the price of the iPhone 3GS to $49 with a new two-year contract is a strategic move to retain customers ahead of Verizon’s anticipated iPhone launch. While the iPhone 3GS may not have all the latest features, it remains a viable option for those looking to experience the iPhone at a lower cost. As the market awaits the next generation of iPhones, consumers have a range of choices to consider, from the budget-friendly 3GS to the more advanced iPhone 4 and 4S models.
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