After announcing the iPhone 4S pricing at its “Let’s Talk iPhone” event on October 4th, Apple also announced that it would be further reducing the pricing for the older generation iPhone 3GS 8GB from $49 to $0 with a 2-year carrier agreement.

According to President and CEO of AT&T Mobility Ralph de la Vega, this price drop has translated to “tremendous” demand for the device… 

“We have another device that I think is going to dramatically change those people that are on smartphones and quick messaging devices, the [iPhone] 3GS, which is free with a 2-year contract. We’ve seen a tremendous, tremendous demand for that device even though it’s a generation old. And actually, we’re getting more new subscribers coming on the 3GS on the average than other devices. So we also have an inventory sold out on that device.”

Additionally he states that, similar to Apple, AT&T reported slower numbers this quarter due to the next-generation iPhone launching in the fourth quarter. AT&T expects numbers to spike dramatically in the holiday quarter with increased sales of the iPhone 4S.

I have to admit, Apple was very smart in offering the iPhone at various price points, with the iPhone 3GS 8GB as a free option, the iPhone 4 8GB at $99, and the new iPhone 4S available starting at $199.99 for 16GB.

Do you know of someone who recently bought an iPhone 3GS? Do you think that the older handset will continue to stay relevant as newer smartphones hit the market?

[MacRumors]

  • Alex

    The older 3GS handset was well made. This is why it is still relevant today. I’m not taking anything away from the iPhone 4, it’s just I feel a lot of time and energy was put in the 3GS design and it’s amazing! It’s sophisticated yet simple, it’s sleek and slim, it was well built and could withstand a hit. The iPhone 4 is a great phone with some design issues. This is why we all deeply wanted the iPhone 5. We need a better designed iPhone. Not to match android but to be the best. I ask that apple look at the 3GS and remember what made it so great!!

    • Jas God

      hear hear

    • JoBerlin

      It’s so good that Samsung copied it … There was a story on iDB about Apple buying lot’s of glass cutting machines for a curved screen. Sounds like a stupid idea to me. But combine this with rumours about a drop form. Sound like the back will be made from curved glass to me, bringing back some parts of the design of the 3G(S).

    • Solid Snake

      Agreed. I bought my 32 GB 3GS on eBay used 6 months ago on eBay, and with 30+ JB tweaks and mods, 70 apps, 40 videos, and 1000 songs, it’s still running fine, and there isn’t an app out yet that it can’t support (to my knowledge at least). Great device, and I plan to keep it until the iPhone 6 is released. Word of advice: OtterBox Defender.

  • Mark

    “iPhone 4S 8GB at $99”

    should say “iPhone 4 8GB at $99”

    • Danny

      It does

  • Keelan

    I got a 3GS when it was at $50

  • Justin

    I know two people who took advantage of the 3GS offer and one of them already returned it and got a 4S.

  • Tim

    My 3gs $649 on Brazil, lol 🙁

  • Rick

    @ Tim I understand your pain. I to live in Brazil and the iPhone 4 here is $R 1800,00

  • Scott

    I just picked up a 3GS on the cheap from a friend who had it in his desk after he upgraded to iPhone 4. With the current iOS running on it, it’s a very easy way to stay current for right now.

    Over time other things will bypass it, the 4S and the higher end Androids are massive upgrades but for people who don’t need the cutting edge or the latest and greatest, it should be fine for sometime.