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AT&T has just announced a huge price drop for iPhone 3GS. The predecessor to iPhone 4 which was selling for $99 will now cost only $49, starting from this Friday, January 7, 2011.

iPhone 3GS

However it is important to note that this price cut has nothing to do with Apple, who are still going to sell it for $99. If you want one for $49, you will have to hunt down to a local AT&T store to grab one for the half price.

AT&T Announces iPhone 3GS for $49.00

DALLAS, Jan. 6, 2011 /PRNewswire/ — AT&T* today announced a new price for the popular iPhone 3GS — $49.00 — available beginning tomorrow, Friday, January 7, for both new and upgrade-eligible existing AT&T customers. The offer will be available online at www.att.com/iphone, across more than 2,200 AT&T retail locations nationwide and through AT&T business channels, as well as Apple channels.**

Available only on the nation’s fastest mobile broadband network, iPhone 3GS delivers the following advantages unique to AT&T and its customers:

* Allows for true smartphone multi-tasking, such as talking and using applications at the same time, on AT&T’s mobile broadband network
* Provides access to our entire national Wi-Fi network with nearly 23,000 hotspots
* Provides the best global coverage with wireless voice and data access in more than 200 countries

“We want to deliver the best, most complete package for our customers — from price, to speed, to worldwide access and more,” said David Christopher, chief marketing officer of AT&T Mobility and Consumer Markets. “Combined with our new, lower monthly data plans beginning at just $15 a month, this new price brings even more value to one of the most popular devices in our leading lineup of smartphones. We’re very excited for more people to experience iPhone on the nation’s fastest mobile broadband network.”

iPhone 3GS gives users access to the latest iPhone iOS 4 software plus the revolutionary App Store. Additional information is available at www.apple.com.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

**Price for 3GS sold in Apple channels is determined by Apple.

Requires new 2-year wireless voice agmt of $39.99 or higher with min $15/mo plan. Subject to wireless customer agrmt. Internal roaming rates or charges apply. Credit approval req’d. Activ. fee up to $36/line. Coverage & svcs, including mobile broadband, not avail everywhere. Geographic, usage & other conditions & restrictions (that may result in svc termination) apply. Taxes & other chrgs apply. See store or visit att.com for details and coverage map. Early Termination Fee (ETF): None if cancelled during first 30 days, but a $35 restocking fee may apply; after 30 days, ETF up to $325 applies (details att.com/equipmentETF). Regulatory Cost Recovery Charge up to $1.25/mo. is chrg’d to help defray costs of complying with gov’t obligations & chrgs on AT&T & is not a tax or gov’t req’d chrg. Wi-Fi: Access includes AT&T Wi-Fi Basic.

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