Cheaper iPhone Less Likely

[Maura]

A few months ago there were lots of rumours floating around the Internet about the possibility of Apple releasing a cheaper version of the iPhone, but the chatter seems to have died down of late, and now AppleInsider reports that according to analyst Charlie Wolf, from Needham & Company, it looks as though Apple has most likely abandoned those ideas. Wolf says that, like many people, he was expecting Apple to keep the iPhone 3GS as a cheaper handset when the iPhone 5 was released, but instead Apple discontinued its entry level phone, making the iPhone 4 now the entry level iPhone. Wolf seems to think this is a mistake by Apple, as he thinks it would have been a good way to make inroads into the pre-paid market to have the iPhone 3GS available at a much cheaper price point. Wolf goes on to say that with prepaid markets growing faster than postpaid markets, Apple needs to be looking into how it can make gains in those markets, including China, which has a huge prepaid market.

Source: Apple seen as 'unlikely' to introduce new, inexpensive iPhone model

 

[zphone]

I doubt that there is very much cost difference in the production of a 3Gs and an iPhone 4. Even if the cost difference is more than $50 which is unlikely, I think apple benefits because it does not have to continue to support old infrastructure not to mention os updates which are always necessary for carrier support.

 

[iphone_at_uva]

I just activated a old AT&T iPhone 3GS on Straight Talk using their "AT&T" compatible SIM card and had no issues. While I would have gone with a 4, the cost difference was over $100 on Ebay and my wife actually prefers the shape and feel of the 3GS over the 4. I think that with the 3GS being able to run iOS 6, and their price dropping now that Apple is not selling them, it actually makes them a perfect "pay as you go" phone as long as you do not "need" one new in the box.