Apple iPhone 3GS to be free on contract following iPhone 5 launch, analyst says

By on Jun 29, 2011 at 10:11 AM
mobile June 29, 2011

Apple is set to finally hit the $0 on-contract mark with its entry-level iPhone 3GS once it launches the next-generation iPhone 5 later this year. In a note to investors on Wednesday, RBC Capital Markets General Manager Mike Abramsky claims Apple is expected to finally offer the phone for free in an effort to aggressively attack mid-market smartphone buyers and counter Android’s momentum. Abramsky sees this move more than doubling Apple’s global addressable market to 150 million smartphones, up from 64 million, and it will drastically accelerate Apple’s growth outside North America. In the U.S., this of course begs the question, how will Verizon Wireless stay competitive with AT&T? Apple does not currently offer a CDMA iPhone 3GS, so the carrier would be unable to match AT&T with mid-market customers. Add to that AT&T’s attractive $15 data plan option versus Verizon’s minimum $30 plan, and subscribers looking for an iPhone on a budget will really only have one place to look. Abramsky currently has an Outperform rating on Apple stock with a price target of $450.

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  • Guest

    I don’t care whether or not it is free because when I got it i had to pay however I am happy that the phone will still be around.  Because the mention of it tells me that this device will still be supported for at least another year.  I am not looking to upgrade to the iphone 4 or 5 and am happy that my 3Gs is still getting love because it does all that I need it to do

  • Gui

    we are in 2011 and the US carriers still charging for mobile phones on contract. lol, what a joke.

    *laughing from across the pond where my iPhone 3G in 2008 was free on contract*

  • http://pulse.yahoo.com/_ML67DN65LGCQWCZENTJX5Z7TYI Dollie Flynn

    I paid $32.67 for a XBOX 360 and my mom got a 17 inch Toshiba laptop for $94.83 being delivered to our house tomorrow by FedEX. I will never again pay expensive retail prices at stores. I even sold a 46 inch HDTV to my boss for $650 and it only cost me $52.78 to get. Here is the website we using to get all this stuff, LiveCent. com

  • Mailballs

    Just yesterday there was not gonna be an iPhone 5

  • Jiro

    Doesn’t make sense, since I can get one now for only $50.  I think they are going to make a cheaper version of the 4 and sell it for ~$300 off contract.  This will get into the prepaid market and could possibly replace the touch.  Bonus points if it is multi-carrier.

  • Anonymous

    Wow, iPhone 3s are still round? I had no idea.

    http://www.total-privacy.se.tc

  • Anonymous

    In other news, analyst farts in a windstorm.  BGR to exclusively report.

  • hunter1234567

    anlyst,anlyst anlyst,anlyst,

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