Analyst: the cheap iPhone will be a free 3GS

Analysts are about as accurate as meteorologists.

It's far more likely Apple will sell the iPhone 3GS or iPhone 4 UNLOCKED... maybe at the currently reduced subsidized price... so that the pre-paid market users can introduce and lock themselves into the Apple world.

This way Apple's no longer relying on the phone companies' subsidies to entice customers to their products.

imagine an iphone4 just $99, apple seems to get more customers in the market, good plan!
http://www.bestheadphonesunder50.com/

The 3GS is already the "free" iphone in Canada, so I suspect AT&T/Verizon will follow suit.

More articles about the pointless predictions of clueless dipshits, please.

I'm pretty sure iOS5 won't support the 3GS, so it would be pointless for Apple or the carriers to offer it for free. All the new stuff Apple has been hyping will require iOS5 (iCloud, etc)

few points to the naysayers

- Apple won't give away $0 iPhones, carriers will
- Apple will still make profit on every $0 handset
- in AU and EU iPhone is already available for $0 on contract
- Apple isn't "lowering" themselves by offering
A) an iPod touch 64gig AND
B) the iPod shuffle

I honestly don't think Apple will move to a 'free' model for any of their products. They've always had this elitist style in both price and quality (I mean that in a positive way).

To those saying a free model cheapens the value, you should know that you can get an iphone 4 for free with a 2 year contract... in europe. Of course the carriers here are vastly different than the ones in the states because 1) they are all GSM based 2) there are more of them and 3) they all unlock their phones after the contract period is over. Yay real competition!

While its likely that from a business perspective Apple is considering things in this area, and it would certainly explain why iOS5 is reaching all the way back to support the 3GS - I have a hard time believing that Apple would continue to push the 3GS going into 2012 when it would be a poor competitor in a lot of ways to other free phones that are out thee. From a competitive analysis position is just doesn't seem to make sense.