updated 09:25 pm EST, Tue February 15, 2011
8GB model was repriced in January
AT&T has swung its attention to the iPhone company with an entirely new ad campaign, including a new TV ad (below) for the 19-month-old iPhone 3GS, promoting the $49 price the company first offered in early January.
The promotion of the iPhone 3GS as a budget iPhone gives AT&T another competitive advantage over Verizon. A minimum iPhone plan with a 3GS would feature a $49 phone price and a $55 per month plan, compared to Verizon's minimum costs of $199 for the iPhone 4 and a $70 monthly plan. Most of the apps on the App Store are still compatible with the iPhone 3GS at present, and the 3GS sports many of the same features (higher-quality camera, ability to run iOS 4, GPS and compass) that make the iPhone 4 so popular.
Apple also offers the 8GB iPhone 3GS for $49.