Now I’m as tired of these next-gen iPhone rumors as the next person, but when industry-insider Jonathan Geller says he’s received iPhone information from a “solid source,” it’s hard to ignore it. Geller’s site, Boy Genius Report, has been home to several Apple exclusives in the past.

His latest report confirms that Apple will indeed be launching two different versions of the iPhone this Fall. One iPhone 4S/5 model will replace the current iPhone 4, and there will also be a cheaper model for the low-end and prepaid markets…We’ve heard from multiple sources that Apple is building this lower-end iPhone from scratch, possibly based on the iPod touch. However, Geller’s information suggests that this inexpensive device could just be the iPhone 3GS offered at a major discount.

BGR’s source claims that the iPhone 3GS will retail for no more than $350 off-contract, which is nearly 50% off it’s original full retail price. They also suggest that Apple will lower the iPhone 4 cost to make it sort of a mid-range device between the new iPhone and the discounted 3GS.

While we’ve heard this information before, this new report from BGR still introduces an interesting dynamic. If Apple does indeed launch a new iPhone 4S/5 this Fall starting at the typical $199 price tag, then lowering the iPhone 4 to $99 and also offering the 3GS for free (on-contract obviously) would give customers a full range of smartphone offerings.

And, as Geller notes, if you combine this with the fact that the iPhone is expected to be on all 4 major U.S. carriers this year (not to mention China Mobile’s network of 600 million+ users), Apple may finally have the model and carrier diversity to face Android head on.

This Fall’s anticipated iPhone event is certainly shaping up to be an interesting one. Not only is Apple expected to announce multiple versions of the iPhone, but some folks are also anticipating a new iPad model. We’re doubtful on that one, though.

All of these cheaper iPhone rumors remind us of the tip we received back in April that Apple was building two iPhone models for this Fall. Hopefully our prediction will pan out.

What do you think about all this? Does it make sense for Apple to offer the 3GS as its low-end device?

  • Alex

    I want my iPhone 5 ASAP with all the features I want (or jailbrake-ability).

    • Andrew

      I want a toilet made out of solid gold.

    • W

      Could you sound like a lil kid please? Lol

    • Dustin

      Jailbreaking iPhone 5? I’m hoping It does. If It’s the same situation as the iPad 2, then Apple has stepped up their game to prevent users from Jailbreaking It.

  • Reno

    Did you say face the Android head on? The truth is Apple will eventually kill all the competition in all level of smartphones.

    • Agreed. Cheap phones, unstable software. Not sure why everyone likes android. Nothing compares to apple quality.

      • drone*

        I work with a major cell carrier and apple products are great but droid has much more to offer for the business professional.

    • Ernesto

      True. They’re a monopoly. I’m pretty sure they’re gonna get sued for that reason in a couple years.

  • Jbravo

    iphone 4 for $99 is a cheat… But I would buy it for my kids… :p

  • sparrow

    how about you go repair your own business model and instead of spamming this blog, pay to advertise on it

  • Dustin

    I’d say this would be a great move for Apple to make the 3GS as lower end model. So for those who are cheap and don’t have the money to pay monthly for a 2 Year contract, you can always get a Pay As you go service (Pre-paid) on the 3GS. Maybe the iPhone 4 still has a 2 Year Contract, but lower the price a bit.

    Even though the 3GS Hardware is a bit out-dated, It will still run iOS 5. I’m hoping the Performance doesn’t take a hit, considering, It’s very similar to the iPhone 4 in terms of CPU and RAM and also very similar to the iPod Touch Forth Generation.

  • MrA

    It’s my iPhone 5 and I want it now!!

    The next iPhone will be the iPhone 5 no matter if it’s small updates or major change. I don’t believe this iPhone 4S business. The iPhone 3GS was called that because it was the iPhone 3G but faster. The iPhone 4 was called the iPhone 4 because it was chronologically the 4th iPhone (not because of 4G speeds). Idk what I’m trying to say, but it makes sense in my head just not when I type it out.

  • Don’t drink that racist coffee.

    Typo: is nearly 50% off /its/ original full retail price. It’s = it is.

    I’d rather have an iPod touch with 3G than a discounted 3GS because of the two cameras and the retina display, etc. Thanks!

    • MrA

      I’d rather have one decemt camera (3GS) than 2 crappy ones.

  • Pads

    I’m returning my Android phone for an iPhone 4 now… Nothing compares to camera quality of the iPhone. Although it may not be a wise decision, to buy a year old phone over newer alternatives… But hey, if it makes me sleep better, then I’m fine.

    • MrA

      You will not regret it my friend.

      • Pads

        But mind you, the look and feel of widgets on Android is refreshingly new and a welcome update to GUI of the phone.

        Phone is faster (well, iPhone is almost a year behind that’s why), 4G capable (well, it’s a new technology) and screen is larger.

        But I’m just so used to the iPhone keyboard, sharper and richer screen (although smaller), OS itself and how settings are managed.

    • MrA

      How is the UI? I haven’t food a phone that has as smooth a UI as iOS. All the android phones seem laggy/choppy even just sliding from one home screen to another. The only phone that comes close to iOS smoothness (that I’ve tried) is the WP7 phones.

      • MrA

        Food = found.

        Stupid iPhone autocorrect! :p

      • Pads

        The UI is great! but with the smaller screen and higher resolution of the iPhone, looking at the screen side by side would make the iPhone more crispy and rich. I got the Atrix, and I don’t see any lag when sliding fron one screen to another. It’s as smooth as the iPhone. May be faster if you may.

    • MrA

      Good info! Well the iPhone does have the beautiful retina display. I’ll have to try out the Atrix haven’t played with it yet. But when you get your iPhone 4 be sure to bookmark this site. iDB is the best site online for all things iOS!

      • Pads

        I’m in the brink of exchanging mine with the iP4. I’m so used with the iPhone keyboard that I screw up all the sentences with my Atrix.

        No need to bookmark this site, I memorize the URL 🙂

  • Coolio86

    iPhone 4S/5 with glasses free 3D screen and 3D camera would be PERFECT. Head tracking with the front camera would make it have a unique selling point over other 3D phones.