Apple follows suit, drops iPhone 3GS handset price to $49 with AT&T contract

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Date: Monday, January 10th, 2011, 06:39
Category: iPhone, News, retail

Without a ton of fanfare, Apple has dropped the price of its entry-level 8GB iPhone 3GS handset to US$49 with a new two-year contract with AT&T, matching the new low price that last week was offered exclusively by the carrier.

The 8GB iPhone 3GS now retails for US$49, down from its original price of US$99. The price change came quietly, without an announcement from Apple, just a few days after AT&T revealed it had reduced the price of the iPhone 3GS as well.

Per AppleInsider, last week, AT&T made it clear that the price of the iPhone 3GS sold in Apple’s own channels, such as its retail and online stores, were determined by Apple itself, suggesting the US$50 price cut was solely AT&T’s doing. At the time, Apple’s official iPhone site still offered the 8GB iPhone 3GS for US$99.

The current-generation iPhone 4 models still carry the same price with a two-year AT&T contract. The 16GB model sells for US$199, while the high-end 32GB model has a price of US$299.

AT&T’s chief rival, Verizon, is widely expected to announce on Tuesday that it will carry a CDMA version of the iPhone in just a matter of weeks. While reports have said Verizon will offer the iPhone 4, no mention has been made of the iPhone 3GS, first released in 2009. If Verizon’s deal is only for the iPhone 4, the US$49 iPhone 3GS could remain an AT&T exclusive.

Starting with the launch of the iPhone 3GS in 2009, Apple began selling the previous year’s model with a two-year AT&T contract in the U.S. for US$99. While the initial US$99 handset from Apple was the iPhone 3G, last year that was upgraded to the 8GB iPhone 3GS when the iPhone 4 launched.

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