Apple to Offer iPhone 3GS Free on Contract?

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Oct 3, 2011.

  1. MacRumors macrumors bot

    MacRumors

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    [​IMG]


    While much of the focus surrounding Apple's iPhone plans has been on the iPhone 4S/5 and the possibility of a low-end 8 GB iPhone 4, there have been a few suggestions that Apple could keep its iPhone 3GS around even longer in order to offer a handset available for free on contract. Despite being based on an over two year old design, the iPhone 3GS continues to be the second best-selling smartphone in the United States behind the iPhone 4, demonstrating that upfront device cost continues to be a major factor in customers' purchasing decisions.

    [​IMG]


    RBC Capital Markets analyst Mike Abramsky today issued a new research note outlining his expectations for Apple's iPhone event tomorrow. While many of his predictions are in line with existing thoughts regarding an HSPA+ iPhone 4S or 5 based on an A5 chip and maintaining existing price points with the possibility of a new 64 GB model also in the mix, he also predicts that Apple will continue offering the iPhone 3GS alongside the new hardware.

    Abramsky outlined his rationale for such a move back in late June, and he continues to stand by his predictions of an iPhone 3GS offered for free on contract or $399 off contract in today's report.
    We might have dismissed this report in the chatter leading up to the event, except MacRumors has also heard that Apple may indeed be keeping the iPhone 3GS around. We haven't heard anything on pricing, but it would likely only make sense as a free-with-contract option as outlined by Abramsky.

    Article Link: Apple to Offer iPhone 3GS Free on Contract?
     
  2. Macopotamus macrumors regular

    Macopotamus

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    #2
    Maybe they'll start offering the iPhone 2G again too

    :rolleyes:
     
  3. FrizzleFryBen macrumors 6502

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    #3
    Only logical if they have a warehouse full of those old phones
     
  4. andylyon, Oct 3, 2011
    Last edited: Oct 3, 2011

    andylyon macrumors 6502a

    andylyon

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    #4
    They should just offer the current 4 with 8GB storage for free. It would make so much more sense. The 3GS (I have one and love it) is old and tired and its form has been around years, they need to move on.
     
  5. Tones2 macrumors 65816

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    #5
    I so want to be a market analyst churning out stuff like this. Where do I apply? :)

    Tony
     
  6. nagromme macrumors G5

    nagromme

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    #6
    The 3GS is still the second-best-selling smartphone in the US (after the iPhone 4 of course):

    http://www.macrumors.com/2011/08/22/iphone-4-and-3gs-rank-as-best-selling-u-s-smartphones/

    And it’s probably cheaper to make than the iPhone 4 is. I’d be surprised if the 3GS doesn’t go away (Apple happily replaces best-sellers all the time) but at the same time, I can’t say it makes “more sense” to give the iPhone 4 away for free, if it’s a more expensive device.
     
  7. applefan289 macrumors 68000

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  8. ashoka8350 macrumors member

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    Jan 2, 2008
    #8
    Guess what!

    Check it out:

    $49.00=iPhone4 with 2 yrs contract(8GB)
    $399.00=iPhone4 for purchase-Prepaid services(8GB)

    $99.00=iPhone4S-16GB-2yrs contract
    $199.00=iPhone4S-32GB-2yrs contract
    $299.00=iPhone4S-64GB-2yrs contract

    $199.00=iPhone5-16GB-2yrs contract
    $299.00=iPhone5-32GB-2yrs contract

    Just wait and see!!
     
  9. Maschil macrumors 6502a

    Maschil

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    #9
    the sad thing is that this phone is still better than some new released droids.... :confused:
     
  10. batchtaster macrumors 65816

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    #10
    I have an iPhone 3GS and I've been very happy with it, but I really don't think they need to be complicating their line. 3 distinct models (3GS, 4, 4S), multiple capacities, some with multiple colors, presumably they'd retain both GSM and CDMA versions of the iPhone 4... Apple's lineup was always simple. Cut loose the model that's 2 generations superseded, find a way to get the outgoing model down to the right price point and be done with it.
     
  11. OrangeSVTguy macrumors 601

    OrangeSVTguy

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    #11
    Who would pay for a phone that's 3 generations old?
     
  12. grapemac macrumors regular

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    #12
    In the UK, the 3GS is already free. You can get a refurb model free for £13.50 per month for 2 years, or a new model free for £18.50 per month for 2 years.
     
  13. Tones2 macrumors 65816

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    #13
    In this scenario, why wouldn't there be an iPhone 5 with 64 GB at say $399?

    Tony
     
  14. Maschil macrumors 6502a

    Maschil

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    #14
    there going to make a ton of money if they do that.... the iphone 4 in my opnion could go another year strong...
     
  15. andy845 macrumors member

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    Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_5 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8L1 Safari/6533.18.5)

    The iPhone 4 can be had for free with a contract let alone the 3GS. At least that's the case here in the UK.
     
  16. Tabris82 macrumors member

    Tabris82

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    Manchester CT
    #16
    So let us assume (Please no 'you and me' jokes) that there are three models of the 4S... By the thinking of this article the 4 8gb version will be $99 with contract. Does that mean the 4S 64gb will be priced at $399?
    To me that sounds a little steep. I imagine the 4 8gb will go for $49, while the 4S 16gb for $99, 32gb for $199, and 64gb go on sale for $299....

    I'm looking forward to see what happens tomorrow.

    (No, I don't believe in an iPhone 5 happening this year)
     
  17. igazza macrumors 6502a

    igazza

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  18. skellener macrumors 68000

    skellener

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    #18
    Which is why the article says it's FREE with contract.
     
  19. Tones2 macrumors 65816

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    #19
    f there is a 64 GB phone, it will be $399. 64 GB chips are still really expensive.

    Tony
     
  20. OrangeSVTguy macrumors 601

    OrangeSVTguy

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    #20
    How many more times are you going to spam this? Go troll somewhere else :rolleyes:
     
  21. grapemac macrumors regular

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    Jul 10, 2008
    #21
    I'm going to get a 3GS sometime between tomorrow and the release date of the new models. Although the price can't come down (it's currently free on all tariffs in the UK), the number of inclusive minutes/texts perhaps will go up.

    I had an iPhone 3G for 3 years and it almost did everything I'd want from a phone. The extra power of the 3GS plus the improved camera plus video recording plus iMessage plus iCloud plus further software updates make it a pretty great phone for £13.50 a month.
     
  22. usman93 macrumors newbie

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    Torrance CA
    #22
    Compettion

    dam, thats cheap for an apple product. Though the plan will prob suck up the ppls money :eek:. w/e the 3gs isnt a bad phone. In fact its pretty bad ass! ;)
     
  23. bnerd macrumors regular

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    May 21, 2009
    #23
    As a developer this is good and (kinda) bad news..

    meaning.. with all the advances of the new iPhones (Ram, CPU) .. I still have to consider the lowest denominator which in this case would be the new surge of 3GS users... that may or may not be a totally BAD thing.. but we shall see.
     
  24. johnmadden78 macrumors member

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    Dublin, Ireland
    #24
    3 Mobile in Ireland have been offering a 16GB iPhone 4 free with a (fairly reasonable) contract for months.
     
  25. SirChadwick macrumors member

    SirChadwick

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    #25
    The fact that "upfront device cost continues to be a major factor in customers' purchasing decisions" has always surprised me when the monthly cost of owning an iPhone can run around $100. One can spend $1,200 a year for service, but $200 for the upfront cost is WAY TOO MUCH. Hmmm.
     

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