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$49 iPhone from AT&T

Apple, AT&T Drop iPhone 3GS Pricing to $49

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Posted on 1/6/2011 18:31 EST

A new $49 iPhone from AT&T may be one more sign that the giant service provider may soon be facing some stiff competition. But why not grab a deal when you can? For new customers that also means signing a two-year contract, while existing customers get to enjoy the benefits of an upgrade.

"Apple and AT&T are dropping the price of the iPhone 3GS to just $49, beginning Jan. 7. The offer is available to new customers signing a two-year service contract and existing ones eligible for an upgrade, the pair said in a Jan. 6 announcement.

The iPhone 3GS is upgradeable to iOS 4, lets user talk and use applications at the same time (multitasking!) and can hop on any of AT&T's 23,000-plus WiFi hotspots..."

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