Apple May Offer the 3GS iPhone for FREE

RBC Capital Markets analyst Mike Abramsky believes that Apple will be keeping the iPhone 3GS in stock even after the next iPhone comes out, offering the device for free with a two-year contract and at $399 for no contract purchases. Currently, Apple is selling the 8GB model for $49 on a two-year contract and $449 without the contract.




RBC Capital Markets analyst Mike Abramsky:
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"As its entry-level iPhone strategy, Apple is expected to cut iPhone 3GS to $0 (on contract, $399 unsubsidized) in conjunction with iPhone 5 launch (we continue to expect it in September). This approach is intended to target mid-market smartphone buyers and counter Android's mid-market expansion. We expect iPhone 5 to launch at $199/$299 ($599/$699 unsubsidized), and Apple to drop iPhone 4 pricing to $99 ($499 unsubsidized).
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