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January 06, 2011

AT&T to Sell iPhone 3GS for $49

If price is a deterrent in getting an iPhone, opportunity will come knocking this Friday as the iPhone 3GS will be available with the cut price tag of $49 from AT&T (News - Alert).

The discount announcement was made this morning—the current price for the iPhone 3GS on AT&T’s website is $99, while the iPhone 4 sells for $299.

Purchasing the iPhone (News - Alert) at this price does require a two-year contract agreement with AT&T of at least $39.99 per month, in addition to a $15 data plan.  AT&T is currently the only network provider of iPhone. 

However, the exclusive relationship is expected to end as Verizon (News - Alert) is soon to join its ranks—a possibility that has been indicated to happen early this year.

There has been some speculation that this move was made in an effort for AT&T to break away from its dependence from iPhone.

The Dow Jones Newswire reported that AT&T added a record number of iPhone subscribers in its third quarter. Despite the cuts made into its near term profit by paying Apple (News - Alert) subsidies—AT&T is making its final effort to capitalize its exclusive position by cutting the price of the iPhone and roping in as many two-year contracts as possible.

The well-known Consumer Electronics Show began today in Las Vegas, where AT&T is expected to reveal 20 new smartphones other than iPhone, soon to be available to its customers.

Other retailers are also offering iPhone promotions, including Radioshack and Wal-Mart.

Janice McDuffee has worked in marketing, editing and freelance writing for companies including SheKnows and HBM Inc. after receiving her master's and bachelor's degrees in journalism from the University of Illinois Urbana-Champaign. To read more of her articles, please visit her columnist page.

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