Apple Could Be Planning to Give the iPhone 3GS Away in the US

[Maura]

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[FONT=&quot]AppleInsider reports today on the thoughts of RBC Capital Markets analyst Mike Abramsky who says that Apple is “expected” to start offering the iPhone 3GS for free in the US once the iPhone 5 launches. According to Mac Rumors, Abramsky says that customers would be able to get the phone for free by signing up for a two-year contract, and an unsubsidized phone would cost $399. He also expects Apple to offer the iPhone 4 for $99 ($499 unsubsidised) once the iPhone 5 is released. As far as the next iPhone is concerned, Abramsky seems to say that it will be an iPhone 5, not an iPhone 4GS, and he expects it to retail for $199/$299 ($599/$699 unsubsidised). Addressing recent rumours that Apple intends to release a smaller and cheaper iPhone as well as the iPhone 5, Abramsky says that he doesn’t think this will be happening until 2012, when it will be better able to make use of the iCloud facilities, which makes a lot of sense if the phone is to have a smaller memory than usual and rely more on iCloud storage and features. [/FONT]

Source: AppleInsider | Apple will offer free iPhone 3GS with 2-year mobile contract - report,
Apple to Cut iPhone 3GS Price to Free With Next Update? - Mac Rumors