iPhone 3GS price goes up to 99 cents with new contract at AT&T


What a bunch of tyrants they are over at AT&T. The company so kindly knocked the price of an iPhone 3GS down to nothing last month — with a new contract, of course — as the iPhone 4S hit stores. It turns out, that was just a temporary price drop on the years-old phone. AT&T has now gone and raised 3GS prices again… to 99 cents (with contract).

The news was first reported by MacNN on Friday. It was confirmed in a statement from the wireless provider, which reads, “”iPhone 3GS is still available at an incredibly low price and we’re confident consumers will agree that this remains one of the best deals for a leading smartphone.” Fair enough.

AT&T is the only provider that offers the 3GS, due to the phone’s GSM-only design, which means there’s no competition. The company’s statement is correct in pointing out that a 99 cent 3GS is still “one of the best deals for a leading smartphone” available. What’s puzzling is the price hike to begin with; industry observers are asking why AT&T would bump it even 99 cents? MacNN speculates that the move is meant to cut down on demand for the phone, since that’s apparently a concern.