There’s been a lot of chatter recently about Apple trying to tap into an international, low price market (more on that later, we’ve got an editorial in the works), but today another analyst says that in America, in addition to dropping the price of an iPhone 4 to make a new low-end model, Apple could start offering the iPhone 3GS for free on a two-year contract. This comes from Mike Abramsky at RBC, who says the iPhone 4 will drop to $99 on contract, and the iPhone 3GS will cost a big, fat $0 if you sign up to AT&T for two years.
$0 would be a major draw for getting people into the iOS ecosphere, but the big problem there is that it’s already two years old, and we’re starting to see apps that have trouble running on the 3GS. I also have the sneaking suspicion that iOS 5 might not be fully compatible with the older model, but we’ll have to wait and see if all the features make the cut.
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