updated 09:15 am EST, Thu January 6, 2011
Companies likely clearing out old stock
Beginning on Friday, the US price for the iPhone 3GS will drop to $49, AT&T has announced. The option will apply at the carrier's online and retail stores, and for upgrade customers as well as new ones. Apple will also be offering the cheaper price tag, according to AT&T.
The 3GS is normally priced at $99, already $100 less than the base model of the iPhone 4. The motivation for dropping the price further is unclear. Apple and AT&T may be concerned about clearing out as much stock as possible, as the 3GS is well over a year old, and a fifth-generation iPhone should ship in the summer, preceded by a Verizon model. The companies are also facing the pressure of cheap Android- or Windows Phone 7-based smartphones matching or surpassing the 3GS' features.