Apple to Make iPhone 3GS Free With Contract Once iPhone 5 is Released?

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Posted June 29, 2011 at 9:40pm by iClarified

RBC Capital Markets General Manager Mike Abramsky believes Apple will make the iPhone 3GS available at $0 with contract once the iPhone 5 is released, reports BGR.

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 Androidâ€™s momentum. Abramsky sees this move more than doubling Appleâ€™s global addressable market to 150 million smartphones, up from 64 million, and it will drastically accelerate Appleâ€™s growth outside North America.

Recent rumors have suggested that Apple may release two devices this fall. With one of them being a lower priced device to dramatically expand its total addressable market and market share.

Apple to Make iPhone 3GS Free With Contract Once iPhone 5 is Released?

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DishGuy - June 29, 2011 at 10:31pm

Apple doesn't sell contracts, so technically Apple can't make these free. The carriers subsidize prices based on contracts, so if anyone it would be carriers setting the price of the phones, not Apple.

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Latte - June 30, 2011 at 3:45am

Uhmm, it's called making a deal where after all is said, both Apple n the carriers will take a loss, relative to current situations, and the customer will get it at $0 down. Obviously, both Apple and the carriers will go for this cuz they will more than make up that "loss" in software/wireless payments.

James - June 29, 2011 at 10:02pm

I don't believe apple will release 2 devices this fall. At least not 2 iPhones. I can see the 3GS being free with contract though.