The iPhone 3GS will be FREE when iPhone 5 comes out… what?!

By now we’ve all grown pretty accustomed to the way Apple does things. For instance, when a new iPhone is announced, it’s expected that last year’s model will drop down to a much lower price and be sold as the introductory handset. Apple is definitely a creature of habit. Or, they used to be…

The guys over at Apple seem to having a bit of fun with their routine this year. Everything that we’ve come to know and love about Apple’s schedule is changing. First they release two new versions of the iPhone in the middle of the product cycle, then they don’t announce the iPhone 5 in June. And now, just when I thought the madness had subsided, a story hits the web claiming that when Apple does announce the iPhone 5, the iPhone 3GS will be FREE (with a two year contract, of course).

In the good old days, when a new iPhone was released, the model two years older (in this case, the 3GS) would disappear all together. But yesterday RBC Capital Market analyst Mike Abramsky released a statement saying when the iPhone 5 finally hits the market, the iPhone 4 will drop down to $99 (as expected) and the 3GS will be totally free.

The reason given for why Apple would offer a free iPhone (something never done before) is to, “target mid-market smartphone buyers and counter Android’s mid-market expansion.” In fact, a survey cited in the article states that 14% of 1,500 customers would be very or somewhat likely to snag a 3GS for free with a two year contract. Abramsky even went as far as to say that if this rumor pans out, it could double iPhone customers worldwide from about 64 million to 150 million!

Earlier this year, if someone told me the 3GS might be offered for free I would not have believed them. Though, this year Apple has changed their policies so many times, I really wouldn’t be surprised now. Personally I would love to see a free 3GS. It’s an excellent device and an offer like that would put it in the hands of countless people who couldn’t (or wouldn’t) pay for the newest model. Would you guys be interested in something like this? Let me know in the comments below or on twitter!

Via: CNET