AT&T: We’re Seeing “Tremendous, Tremendous Demand” for the iPhone 3GS

AT&T: We’re Seeing “Tremendous, Tremendous Demand” for the iPhone 3GS

Apple recently revamped its iPhone lineup with a 8GB iPhone 4 for $99 and a free iPhone 3GS with a two-year contract on AT&T. The iPhone 4S was made available on AT&T, Verizon, and Sprint at the regular $199 starting price.

CEO of AT&T Mobility Ralph de la Vega held a conference call with analysts today to discuss consumer demand for Apple’s cheaper iPhones. AT&T is seeing “tremendous, tremendous demand” for the iPhone 3GS.

“We have another device that I think is going to dramatically change those people that are on smartphones and quick messaging devices, the [iPhone] 3GS, which is free with a 2-year contract. We’ve seen a tremendous, tremendous demand for that device even though it’s a generation old. And actually, we’re getting more new subscribers coming on the 3GS on the average than other devices. So we also have an inventory sold out on that device.”

The iPhone resulted in AT&T’s best results ever for the third quarter. Ralph de la Vega is “very, very optimistic on what the fourth quarter is going to look like in terms of smartphone growth” for his network.

AT&T has sold 1 million iPhone 4S units on its network already.

(via MacRumors)

  • John Mozelewski

    if they cant pay for a 199.99 phone how are they going to pay 30 bucks extra every month for 2 years?

  • bavnoo

    Well thats pretty cool man. Good for AT&T, very cool indeed. Wow.
    Anonymous-Toolz.tk

  • bavnoo

    Oh wow very cool! Way to go AT&T you totally rock dude.
    real-privacy.it.tc

  • Josiahl

    I know a couple of people who can easily afford the $199 iPhone 4S but are buying the iPhone 3GS.  I asked them the same question.  Their response?  “I pay enough for my cell phone bill, I’m not going to pay anymore then I have to”.  Makes sense to me if you are okay being a generation or two behind.

  • stynkfysh

    What does this do to iPhone fragmentation?  I mean, is this tremendous number of people going to be left behind with new apps?  Or are developers going to be bogged down creating apps that satisfy the processor, resolution, and memory capabilities of the 3GS?  Maybe people buying the 3GS may be mostly interested in more basic functions (web/messaging)?

  • Foctobar

    In Japan you get the 4S free with two year contract.

  • Kirill Kay

    Nothing, ‘cuz iOS5 installs on 3GS just fine.

  • stynkfysh

    What about screen resolution and processing power?

  • John Mozelewski

    idk i believe you idk i just can’t c buying a phone that is so out of date(most likely 4 generations out of date by time they get new phone), but i guess thats why im not in marketing.

About the author

Alex HeathAlex Heath has been a staff writer at Cult of Mac for three years. He is also a co-host of the CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like "ICONIC: A Photographic Tribute to Apple Innovation." If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Twitter always works too.

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