Apple Offers iPhone 3G for $99, Unveils iPhone 3GS

Telecom News Editorials Reports Glossary

1:46 pm on June 9, 2009 | Category: Business, Mobile Devices, Cell Phones

Apple is repositioning its flagship iPhone device to compete more effectively with rival smartphones from Palm and Research In Motion.

The company announced yesterday that it is cutting the price of the iPhone 3G to just $99 (from $199), and launching a new and improved device (the iPhone 3GS) with a range of new features.

The iPhone 3GS will be twice as fast as the current model, and will boast new voice features, as well as a built-in video camera. It will be available in the United States, Canada, and a number of other markets beginning June 19, at a cost of $199 (with 16GB of memory) to $299 (for the 32GB version).

Analysts expect that, by offering a range of iPhone products, Apple will be able to greatly increase sales in the mid-range consumer market, while also presenting an effective challenge to Palm’s new high-end smartphone, the Pre, which launched over the weekend.

“Apple’s strategy appears to be designed to take advantage of the current limited availability of the Palm Pre,” explained Lawrence Harris, an analyst with CL King & Associates. “It is clear that Apple intends to maintain its leadership position in the smartphone market, given its decision to cut prices.”