Analysts foreseeing Apple introduce two iPhones at Tuesday’s event should get their eyes fixed. That’s the message from a Wall Street expert predicting the tech giant will unveil one new handset, but reduce prices on the iPhone 4 to $99 and the iPhone 3GS to free with carrier contract.
Apple will announce a new smartphone – either the “iPhone 5” or “iPhone 4S,” RBC Capital Markets analyst Mike Abramsky writes Monday. Some observers suggested the Cupertino, Calif. company would announce the highly-awaited iPhone 5 along with an inexpensive handset perhaps destined for China.
Traditionally, when Apple unveils a new iPhone, it axes the second-year version. When the company unveiled the iPhone 4 in 2010, it cut the iPhone 3GS price first to $99, then later reduced the handset to $49 with contract.
Earlier this year, Abramsky said Apple would not release a low-cost iPhone unless it provided an “innovative, category-killer experience.” He sees converting the iPhone 3GS to free with contract both with consumers seeking an inexpensive iPhone experience while also rivaling Android’s growth in the low-price category.
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
22 responses to “iPhone 4 To Drop To $99, iPhone 3GS To Be Free On Contract After Tomorrow [Report]”
DUH
In the first place, iPhone 4 is already available for free in many markets on exactly the same deal so they don’t need the 3Gs for that. In the second place, the 3GS is noticeably slower and doesn’t have either a camera for FaceTime nor does it have a retina display. It *should* and probably will be discontinued. This report is basically nonsense or a wild guess.
I have to agree with Prof. Apple has a great reputation for canning old products. The iPhone 3GS is over two years old. In fact, I got an eMail saying that they don’t support older products, they move forward when I asked about my PowerMac!!!! So CofM, you have to quit relying on last minute rumors.
they aren’t relying on last minute rumours, they just report what they hear.
Yea, I doubt they’ll keep the 3Gs around…
Wouldn’t surprise me the least if they are keeping the 4 around though (like the did with the 3Gs), it’s what I expect them to do, if they release a new cheap model together with the new standard model that will surprise me a lot more.
Okay, people, who didn’t see this coming? REALLY!! Told you the iPhone 4 would drop to a ridiculous price. Why build a new cheap iPhone when you already have them on the market. Not a wild guess because those who couldn’t afford the iPhone 4 or when it first came out don’t care if it’s slower, no retina display, etc…it’s an iPhone and for the market they are targeting (poor, disenfranchised areas) this makes sense. You have to watch the way AT&T has been practically giving these phones away. Also the plan that they have is kinda okay too. Most kids use wi-fi more than 3G or 4G so you will see alot more 3GS’s running around. Some people will be behind the curve, but I think that it will be okay because when the iPhone 5 hits $100 in the future they will see what you see now and why it will continue to be a big deal to those you can’t afford to get the newest iPhone now. Apple knows what it’s doing and I applaud them for their efforts to include everyone, even if it is an older model…..It’s still an iPhone and that’s all that matters
The 3GS has been free on contract in Telcel (in Mexico) for about 6 months or so…my guess is that the 4 will be cheap for about 6 months, then go free…and the 3GS will probably become cheap-on-prepaid instead of free on contract.
I would just go for the 3GS with a 2 year contract.
Still not really addressing a prepaid market. I’m not buying a 3GS cause it’s far too old and the iPhone 4 is probably going to drop to $549CA without a contract [down from $659CA]. I doubt two phone being unveiled but a cheaper iPhone would be nice…NOT ON A CONTRACT!
Or, just get rid of the 3GS and sell the iPhone 4 at $49. That would be the deal,
the iphone 3gs should be free without a contract and the iphone 4 should be $49 with a contract