iPhone 4 and 3GS still selling strong

Depends which platform you want to be stuck in. Once you start buying Apps in one ecosystem it's hard to switch because you'd have to buy all the respective apps in a different one. Especially with iCloud pushing your content. I'd almost bet that once your an iPad user you'd probably be more willing to buy an iPhone so you can share your apps and files on iCloud. Same goes for Android and whatever Google will call their iCloud equivalent. I've heard they're going for G-Drive or something like that.

At&t and t-mobs should saturate the market with prepaid 3GS'. It would be the iPod shuffle of the smartphone industry.

In the UK, Three are offering a "free" 3Gs with a decent £20 a month 24 month deal. I notice it ends on 31st October when, I suspect, it'll be replaced by the new 8Gb iPhone 4 as the "entry" model. Some UK carriers are now listing the 8Gb 4, which is due to be available on the 14th.

I am still using a factory-unlocked 32GB iPhone3GS though things will change this weekend because my daughter has just ordered me a factory-unlocked 32GB iPhone4S.

The 3GS is going to my son who is moving over from a Blackberry.

Re: "Walkley and other analysts have repeatedly found that old iPhones continually outsell new Android phones"

Is this true? I thought Android is growing faster than iOS. Where can we see these stats?

iPhone 4 is an incredible piece of hardware, it still has the unchallenged 326 ppi display.

http://en.wikipedia.org/wiki/List_of_displays_by_pixel_density

Simple reason for that. You want iOS? You get...the iPhone. You want android? You get at least 8 different choices at any one time, and they are always swapping out. That can be seen as both a good thing and a bad thing. It's harder to keep track with android, but there's better odds that one of them fills a good niche for you.