iPhone 3GS Will Still Be The Low-End iPhone Even After iPhone 5

By

iphone-5-metal1

Contrary to yesterday’s rumors, a new analyst report suggests that the iPhone 3GS will remain the low-end iPhone even after the iPhone 5 drops in September… making it the first iPhone to spend over three years on the market.

“In other words, we believe that the [existing] 3GS will be the low-end iPhone,” BMO Capital’s Keith Bachman writes Tuesday. Monday, Deutshe Bank’s Chris Whitmore told investors a low-end iPhone 4S that was unlocked and pre-paid could help Apple “aggressively penetrate the mid range smart-phone market” as RIM and Nokia are on life-support.

Bachman’s comments appear to bring some sanity back into the discussion. As we intimated Monday, the idea of releasing the iPhone 4S as a $350 unlocked phone just didn’t make sense when Apple is currently selling the unlocked iPhone 4 for nearly $700 each. Still, it’s interesting that the hardware price on the iPhone 4 has yet to come down enough to make it worth Apple selling at a lower price. You can probably thank the Retina Display for that.