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Apple To Offer $99 iPhone 3GS Alongside Next Generation iPhone?

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This morning, reports from Morgan Stanley expects Apple to drop the price of the current iPhone 3GS to $99 (on contract) once the new next generation iPhone is released in June/July 2010.

Apple made a similar move with the launch of the iPhone 3GS in 2009. In June 2009, the iPhone 3GS was available for $199/$299 (with agreement) or $699/$799 (without agreement).

Apple then kept the 8GB iPhone 3G at a price of $99 (with agreement) or $599 (without agreement), which was a $100 price drop from when the iPhone 3G first launched.

While many expect Apple to keep the 16GB iPhone 3GS for $99 with the launch of the new iPhone, it is also possible that Apple may remove the entire current lineup of iPhone devices.

If the next generation iPhone looks anything like the leaks we have been seeing, keeping the iPhone 3GS on will look rather odd next to the new iPhone. The two iPhone models, 3GS and next-gen, will look so different that the iPhone 3GS may simply be ignored entirely.

So what do you think? Will Apple keep the iPhone 3GS on at $99 or will it only be the next-gen iPhone?

[Fortune]

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  • Emuler

    I think they'll keep it. Some folks might not like the new design of the new 4g, and wish for the more classic design, aside from aesthetics the iphone 3gs could still be an attractive choice for people on a budget, plus with the added new OS features its worthwhile keeping the 3gs. Ppl love options, i think it would be foolish of Apple to cut the 3gs from their lineup.

  • jordan

    Couldn't have put it any better than that Emuler!!

  • mrideas

    Given that the 3G and previous phones won't be able to run the new multi-tasking system in the OS very well if at all I think they'll be dropping the 3G and will go with the 3Gs as the new 'cheaper' option. Always good to have a couple of options for those customers who don't want to pay a great deal but still want an iPhone. Surprising how that extra $100 makes or breaks it for some. Will be good to see the new iPhone up close to see if I want to shell out some more cash for it.

  • mackman6151

    i think they'll have to do some sort of promo pricing because there will be all that stock left over that needs to be sold. maybe once that initial stock is sold out they will stop production of the older 3gs's….also as with every iphone launch its usually sold out everywhere in the first few days and theyre allways so backlogged on orders (iphone 3gs took months for some people)….they may consider keeping the 3gs in production until sales of the new model start calming down.

  • Emuler

    I think they'll keep it. Some folks might not like the new design of the new 4g, and wish for the more classic design, aside from aesthetics the iphone 3gs could still be an attractive choice for people on a budget, plus with the added new OS features its worthwhile keeping the 3gs. Ppl love options, i think it would be foolish of Apple to cut the 3gs from their lineup.

  • jordan

    Couldn't have put it any better than that Emuler!!

  • mrideas

    Given that the 3G and previous phones won't be able to run the new multi-tasking system in the OS very well if at all I think they'll be dropping the 3G and will go with the 3Gs as the new 'cheaper' option. Always good to have a couple of options for those customers who don't want to pay a great deal but still want an iPhone. Surprising how that extra $100 makes or breaks it for some. Will be good to see the new iPhone up close to see if I want to shell out some more cash for it.

  • mackman6151

    i think they'll have to do some sort of promo pricing because there will be all that stock left over that needs to be sold. maybe once that initial stock is sold out they will stop production of the older 3gs's….also as with every iphone launch its usually sold out everywhere in the first few days and theyre allways so backlogged on orders (iphone 3gs took months for some people)….they may consider keeping the 3gs in production until sales of the new model start calming down.

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