iPhone 5 Release: Device Launch Sparks Free iPhone 3GS With Contract?

With the unveiling of Apple’s next iPhone coming today most consumers are focused on the possibility of the company releasing the iPhone 4S or iPhone 5, but where does this leave the 3GS?

Experts and blog sites are predicting that Apple will offer iPhone 3GS for free with a contract once the new models are released.

Even with the popularity of the iPhone 4, the iPhone 3GS still remains the second best-selling smartphone behind its successor which proves that if the price is right, customers do not mind settling for an older device, since the smartphone currently goes for just $49 with a two-year contract on AT&T.

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According to RBC Capital Markets analyst Mike Abramsky, Apple will continue to offer the 3GS along side of the new models whether the company releases the iPhone 5 or 4S.

He also predicts that a 64GB iPhone model will be announced tomorrow.

“We expect Apple to reduce the price of the prior iPhone 4 to $99 subsidized ($499 unsubsidized) and the iPhone 3GS to $0 subsidized ($399 unsubsidized); the prior iPhone 4 may be available with only 8GB memory,” Abramsky said.

Tech site, MacRumors also heard from its own sources that Apple would be keeping the iPhone 3GS around after launching the new models.

The site did not receive any information regarding pricing, but feels Abramsky’s free-with-contract prediction makes sense for Apple.

The tech giant’s “Let’s Talk iPhone” media event will take place Tuesday morning at Apple’s Cupertino, California campus.

It is still up in the air whether Apple will unveil a redesigned iPhone 5 or an updated iPhone 4S.

Most analysts are leaning towards the company releasing the iPhone 4S, and the device has appeared in Apple’s inventory and in iTunes.

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