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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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