Apple Allegedly Dropping the iPhone 3GS; iPhone 5 Will Take New Nano SIMs

According to a report by The Telegraph, sources tell them Apple will soon drop the iPhone 3GS from its line up as the entry iPhone model, to be replaced by the 8GB iPhone 4, with suggestions an 8GB iPhone 4S could be introduced as well.

The iPhone 3GS (or originally the 3G S; remember that space?) debuted in June of 2009 and has remained as a low cost entry into the Apple ecosystem, however its older hardware has limited its ability to have the most recent features from iOS, although it still can run iOS 5. Even as a ‘free’ carrier-subsidized phone, it remained a popular entry model. Apple continues to sell unlocked iPhone 3GS units for $375 CDN.

The report also notes the iPhone 5 will use the new 40 percent smaller nano SIMs, a standard Apple pushed for:

The iPhone 5 will also be one of a new generation of phones, including the Nokia Lumia 820 and 920 announced yesterday, that will use a new, 40 per cent smaller nano sim. The sim card will require existing users to change their current sim when they upgrade.

With a the reduced size of the SIM card tray, smaller dock connector, and thinner screen, it will most likely allow Apple to fit more components into the next iPhone such as a larger battery.

Other tidbits in the report note three storage options of the iPhone 5 will be available with store sales to start the week of September 21st, which we’ve previously heard before.

Every time a new iPhone is released, older generations get cheaper and debut with a smaller storage capacity. We saw this with the iPhone 4 when the iPhone 4S was announced. Having four iPhone models would definitely keep things crowded, but to retire the iPhone 3GS would only make sense given its older hardware.