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The 8 GB iPhone 3GS will be available for free with a new two-year carrier contract, said Phil Schiller, senior vice president of worldwide product marketing at Apple. This is the first time Apple has sold an iPhone model for free.
The company will also sell the iPhone 4 for $99 with a two-year contract. The new iPhone 3GS and iPhone 4 prices will go into effect when the company starts selling the iPhone 4S.
The reduced price points are bound to make iPhones accessible to consumers more interested in owning an affordable Apple mobile device than getting the latest and greatest — of course, we’re talking about the iPhone 4S, which starts at $199 with a two-year contract and will be available for pre-order beginning Oct. 7. Both devices will be able to run iOS 5, a free software upgrade.