Apple expected to keep the iPhone 3GS but reduce its price

Though the iPhone 3GS was introduced in 2009, there is analyst who think that Apple will still continue on selling its third-generation handsets. Analyst Mike Abramsky with RBC Capital Markets says that he expects Apple to introduce a completely new iPhone naming it either the iPhone 4S or the iPhone 5. However he does not expect them to be launching two new iPhone, one being cheaper. Instead he expects that they will be selling their third generation iPhone at a cheaper price.

He added that he expects that the iPhone 4‘s price will drop down to $99 subsidized and $99 without a service contract. And  that he expects Apple  to keep the iPhone 3GS and offer it free with a 2 year service carrier agreement or sell it at $399 pay as you go.

Apple is known to discontinue the two year old iPhone when a new one is released. If it undertakes this new policy it will be a change for it. Previously what happened was when the iPhone 4 was launched,  the iPhone 3GS was dropped to $99 with a contract, and in January the price went down even more to $49.

There have been rumors that Apple will be introducing a new entry level iPhone for year, which will allow the company to invade a new market of prepaid phones especially in China. This was the rumor that led to the no current discussions about Apple introducing two new iPhone, one of the cheaper.

Abramsky exoected that Apple will be working on a new low cost iPhone back in August, he called that it would be an “innovative, category-killer experience.” In June he expected that Apple will offer the iPhone 3GS for free once the iPhone 5 is launched. He thinking that Apple is trying to approach the mid-market buyers to counter the growth of the Google’s Android platform.

However, the focus this week will be the new fifth-generation iPhone.  Abramsky believes that the new iPhone will indeed have the  the A5 processor, an 8-megapixel camera, support for high-speed HSPA+ networks, and a new high-end capacity of 64GB.

Abramsky says that Apple may end up choosing to brand  HSPA+ as “4G,” as U.S. carriers T-Mobile and AT&T have opted to do, although it isn’t 4G long-term evolution.

via Appleinsider

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