Despite the fact that Apple just released a shiny new iPhone 4S and reduced the price of the iPhone 4 to just $99, AT&T announced in a recent conference call that the carrier is seeing “tremendous demand” for the iPhone 3GS since Apple began offering it for free with a 2-year contract.
From AT&T CEO Ralpn de la Vega:
We have another device that I think is going to dramatically change those people that are on smartphones and quick messaging devices, the [iPhone] 3GS, which is free with a 2-year contract. We’ve seen a tremendous, tremendous demand for that device even though it’s a generation old. And actually, we’re getting more new subscribers coming on the 3GS on the average than other devices. So we also have an inventory sold out on that device.
The iPhone 3GS is the first iPhone to ever be offered free in the U.S. with a 2-year contract, and it appears to be making some serious waves. There’s little doubt that this was an excellent choice for Apple to address the low cost or free phone market.