Prepaid and cheaper iPhone rumors to take on Android

BGR reports that we may soon see a cheaper, contract-free iPhone 3GS.

Apple may be preparing to assault the prepaid side of Android with a contract-free iPhone of its own.

According to Boy Genius Report, an anonymous source says Apple plans to launch a prepaid, contractless version of the iPhone 3GS for just $350. BGR also reports that a newer model of the iPhone will be coming out or "at least announced by the end of summer, late August-ish," and that Apple will continue to sell the iPhone 4 alongside the newer model (likely dubbed the iPhone 4S or iPhone 5).

This is no real surprise--in the past, Apple has sold previous-generation iPhones at a reduced price alongside the latest models. This year, however, Apple may reach back two generations and continue selling the iPhone 3GS as a cheap, prepaid alternative--giving Apple the full range of devices, as BGR points out: high- (new iPhone), mid- (iPhone 4), and low-end (iPhone 3GS).

Apple has already demonstrated its willingness to be aggressive with iPhone 3GS pricing: in January, the company started selling the 3GS for just $49 with a two-year AT&T contract. Selling the 3GS for $350 with no contract would give Apple access to a prepaid market which, in the United States, is currently getting lots of love from Android, thanks to offerings such as the Samsung Intercept on Virgin Mobile ($250) and LG Thrive on AT&T ($179).

The standard Apple rumor disclaimer applies: The latest rumor is just one report based on a single unnamed source, but we've heard this song and dance before. In February, the New York Times, Bloomberg, and the Wall Street Journal all reported that Apple was planning a cheaper iPhone, though they disagreed on the size of the handset. The Times speculated that Apple wanted to attack the prepaid market, particularly outside the United States, where carrier subsidies are uncommon. I'd be surprised if this rumor doesn't pan out.

Still, don't expect wireless carriers to make a big deal out of a prepaid iPhone 3GS, even if the rumor proves accurate. They'd much rather lock you into a two-year contract, and if you're okay with that, I'm guessing you'd much rather pay less money up-front for better hardware.

Follow Jared on Facebook and Twitter for even more tech news and commentary.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags smartphonesAppleiPhoneconsumer electronicsapple iphoneat&tiphone 4

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jared Newman

PC World (US online)
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Exec

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?