Apple Inc. had reportedly slashed the price of its iPhone 3GS model to zero when purchased with a contract, with the launch of its latest iPhone 4S last month. According to reports, industry analysts believe that this move could help Apple in competing with the lower range devices running on Google Inc.’s Android software, without negatively affecting its profits.
While sources say that the two year old iPhone 3GS does not include the latest features such as the voice-activated assistant Siri, offered in the iPhone 4S, users would still prefer it over most of the rival handsets being offered in the market for the similar price.
As per reports, wireless carrier AT&T, which is the only operator selling the iPhone 3GS, sold out its entire stock of the handset after the price change was implemented saying that there has been tremendous demand for the same. Currently, Apple is selling its iPhone 4S between $199 and $399 while the iPhone 4 is being sold for $99. As per sources, Apple reported a total revenue of $11 billion from iPhone sale last quarter.
