Following AT&T’s lead, Apple has dropped the end user selling price of its previous-generation smartphone, the iPhone 3GS. Last week, AT&T announced that it would be dropping the price of the iPhone 3GS to $49 with a new two-year contract. Today, Apple has matched the $49 price online and at Apple Store retail locations. The new price is a 49% reduction and applies to new iPhone 3GS units, not refurbished devices. The iPhone 3GS was launched in the summer of 2009. When the iPhone 4 was introduced last year, Apple continued to sell the 3GS for $99 as a less expensive iPhone option. The company also did the same thing with the iPhone 3G when the 3GS was introduced. The iPhone 3GS is currently available with 8 GB of storage space in black only.