AT&T drastically dropped the price of the refurbished iPhone 3GS to $10 with a two-year contract, suggesting it may be clearing out its inventory before the release of the iPhone 5.
The Dallas, Texas-based carrier said a brand new 3GS will still cost $50. The iPhone 5 is reportedly set to debut in September as suppliers begin to ramp up production.
Analysts expect the iPhone 5 to have a similar exterior as the iPhone 4, but include more advanced features, such as a dual-core processor, 8-megapixel camera and 1080p video recording. These updates, which mark a slight upgrade from the iPhone 4, would create a substantial gap between the 3GS and current iPhone hardware.
Wireless carriers often cut the prices of old devices just before they release new products. When Apple rolled out the iPhone 4 last year, it dropped the price of the 3GS to as low as $100 with a two-year contract. Many analysts expect Apple will do the same when the iPhone 5 is released, putting the iPhone 4 at a reduced price.
In addition, the new iPhone 5 and continued sales of the iPhone 4 will likely mean the end of production of the 3GS. The new price will likely make the 3GS sell quickly, and once it’s gone it may never come back.
http://www.forbes.com
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