Apple to Launch Next-Generation iPhone in Late August, Offer Unsubsidized 3GS for $350?

MacRumors · Jul 18, 2011

BGR reports that it has received information from an "incredibly solid source" claiming that Apple will be introducing its next-generation iPhone "by end of the Summer, late August-ish" and taking advantage of the opportunity to expand its iPhone line to three models by selling the new handset alongside the existing iPhone 4 and potentially continuing to offer the iPhone 3GS as a low-cost device available for $349 without a contract.

The source reports that the next-generation iPhone isn't likely to sport a major redesign compared to the iPhone 4, suggesting that case manufacturers should have already leaked the new design if it was in fact different from the iPhone 4. With other sources adamantly reporting in recent weeks that the next-generation iPhone will receive an external redesign, the "will it/won't it" debate remains unsettled.

If this turns out to be true, it will mean there would be an iPhone 4S in addition to the prepaid iPhone 3GS available within the next month to two. Let's do one better, though. In addition to that news, we are told that Apple will continue to sell the current iPhone 4 as well, finally giving the company a full range of devices in the lower, mid, and high-end price segments.

Rumors of Apple releasing a low-cost iPhone carrying an unsubsidized price in the range of $350 have been circulating in recent weeks, with one analyst claiming that Apple will in fact be using the iPhone 3GS to fill that role, slashing its price to free on-contract and $399 without contract. The 8 GB iPhone 3GS currently retails for $449 unsubsidized.

Article Link: Apple to Launch Next-Generation iPhone in Late August, Offer Unsubsidized 3GS for $350?

Navdakilla · Jul 18, 2011

also sounds good to me, seems like apple is going for a larger portion of the marketshare. The iphone4 can only go so far against 50 different kinds of android phones

WannaGoMac · Jul 18, 2011

3GS actually is possible

I think the 3GS rumor is likely correct as Apple made a point of iOS 5 working on the 3GS

However, given how much a mixed bag iOS 4 is on the 3GS I wonder how well iOS 5 will run?

mazz0 · Jul 18, 2011

But the 3GS is more than two years old, even people interested in the low price will want something newer than that.

Airforcekid · Jul 18, 2011

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

3Gs will have to support iOS 6 if they keep selling it or make a lot of uninformed customers mad then again they may never know iOS 6 came out.

korndawg · Jul 18, 2011

Iphone 4S? Epic fail on Apple's part (and yes, I know they will sell millions). 15 months to put a new CPU in an iphone. Not impressed.

BillyBobBongo · Jul 18, 2011

The price gap has to increase

Currently in Europe you can buy a 8GB 3Gs for € 499,00 or a 16GB iPhone 4 for € 599,00, it's a no brainer which one you'd buy. If the gap increased to being more in the region of € 200 then I could see more people buying up older models.

tripjammer · Jul 18, 2011

This is not gonna happen...

There will be three phones.

Iphone 5...with screen to edge display...and 4 inches $199 with 32GB

Iphone 4 discounted to $Free with 16gb

Iphone 5 nano... priced at $99 16gb

The 3GS is dead...

surf2snow1 · Jul 18, 2011

mazz0 said:
But the 3GS is more than two years old, even people interested in the low price will want something newer than that.

Even at two years old, many customers will still choose the 3GS over most droids. It is def not a bad baseline model.

mtcowdog · Jul 18, 2011

mazz0 said:
But the 3GS is more than two years old, even people interested in the low price will want something newer than that.

korndawg said:
Iphone 4S? Epic fail on Apple's part (and yes, I know they will sell millions). 15 months to put a new CPU in an iphone. Not impressed.

Agree with both. If true, no wonder Apple is investing in lawyers.

I hope these are false rumors. From my biased consumer viewpoint, anything short of a whiz bang new iPhone is "teh fail". I'd look to the rumored Nexus prime (on Verizon) before I'd buy a spec bumped IP4. And why would anyone buy a 3GS? Really?

skellener · Jul 18, 2011

Still rockin' a 3Gs and it works fine with iOS4. If they do keep selling the 3Gs that's good news. They must feel that iOS 5 works well enough on it to continue to support it. As long as it continues to work, I'm holding off on a new iPhone until it hits the next gen networks.

jb1280 · Jul 18, 2011

Airforcekid said:
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

3Gs will have to support iOS 6 if they keep selling it or make a lot of uninformed customers mad then again they may never know iOS 6 came out.

I am guessing that the people who this phone would be marketed towards would not have any concern that the their phone might not get iOS 6. The other important thing to consider is that is the new development timeline for iOS. May we not see iOS 6 until 2013?

tuhoops · Jul 18, 2011

Unsubsidized prices are indeed going down. I remember standing in line to buy the original iPhone in 2007 for $599. What upset me then was that AT&T was still requiring a two year contract to upgrade to the iPhone, even though there was no subsidy to justify the requirement of the contract. Yes, I know, I did it anyway, betting that they (Apple and AT&T) would eventually figure it out, which they did in subsequent releases. In fact, a year later, I believe anyone who purchased the original iPhone was allowed to upgrade to the iPhone 3G at the new subsidized price. Also, a few months after the original iPhone was released, Apple changed the pricing, causing a major uproar from early adopters. I believe I received a $100 Apple gift card, and an apology open letter from Steve Jobs to all early adopters. It was obvious back in 2007, Apple had no idea how the cell phone equipment pricing world worked. They've come a long way.

rodricav · Jul 18, 2011

3GS without contract won't be successful for USD350. There are much better phones for the same price. Motorola Defy and Samsung Galaxy S are 2 of them.

DrJohnnyN · Jul 18, 2011

Is this a good thing?

Vantage Point · Jul 18, 2011

Wouldn't a 'major redesign' of a iPhone 4 be better marketed as an iphone 5?

Popeye206 · Jul 18, 2011

korndawg said:
Iphone 4S? Epic fail on Apple's part (and yes, I know they will sell millions). 15 months to put a new CPU in an iphone. Not impressed.

LOL! I love it when people say "epic fail" on Apple. Heard it with every update of every product and yet they still sell like hot cakes.

I'm just curious as to why keep the 3Gs? They should just go iPhone4 and 4s. I'm guessing the 4s will be much more than just a processor update.

Epic Fail... funny!

smiddlehurst · Jul 18, 2011

To anyone thinking a free 3GS on contract wouldn't be a big seller just because it's an old model... have a look at the lower end Android handsets. The ZTE Blade and HTC Wildfire are great examples of handsets that are older specifications but very popular as they're sold cheap and offer what a lot of people want. "Good Enough" rather than "Best in Class".

A (relatively) cheap 3GS would let Apple get into that market without wrecking their profit margins. Forget the unsubsidised price, it'd be all about getting the contract price as low as possible as that's still the way the majority of people buy their phones.

FriarNurgle · Jul 18, 2011

I think a 3G iPod Touch will make more impact.

NebulaClash · Jul 18, 2011

Not everyone likes the squarish design of the iPhone 4 and they prefer the curved 3S instead. It would be smart for Apple to keep both types of designs to appeal to the greater slice of the market.

Chupa Chupa · Jul 18, 2011

Not sure I see the joy of a less expensive unsubsidized phone if its not going to be factory unlocked too. Right now U.S. unsub iPhones are locked. It's time for Apple to start selling unlocked phones in the U.S. and requiring carriers to unlock phones at least at the end of a contract, if not sooner.

pkson · Jul 18, 2011

Boy Genius doesn't sound so smart this time.

brian badonde · Jul 18, 2011

Remember, a lot of people who use iphones are not familiar with the differences between each OS. The 3GS is still a great phone, the only reason why it looks old is because the iphone 4 is that much better. The only drawback for the iphone 4 is £500 for a phone is steep. A $350 iphone will sell well and make it far more accessible.

Currently in Europe you can buy a 8GB 3Gs for 499,00 or a 16GB iPhone 4 for 599

Yep, the 3GS is way over priced! even worse in the UK!

For most people who are not techie, or do not frequent macrumors, the 3GS will do just fine. And for $350 will blow android, windows mobile and the rest out of the water. Wouldn't this compete also with the ipod touch?

MacSince1990 · Jul 18, 2011

No. Just no.

Popeye206 · Jul 18, 2011

surf2snow1 said:
Even at two years old, many customers will still choose the 3GS over most droids. It is def not a bad baseline model.

Last sales numbers on individual handsets put the 3Gs at #3 in sales. iPhone 4 was #1. That was three months ago, so I'm sure it's changed.

I think some people just want a nice smart phone and the 3GS is not horrible. I liked my 3G when I had it. But the iPhone4 was such a killer upgrade, it would be impossible to go back.

Can't wait to see what's actually in the line up this fall.... looks like it's going to be busy for Apple. Lots going on.

Apple to Launch Next-Generation iPhone in Late August, Offer Unsubsidized 3GS for $350?

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