Apple iPhone 3GS for $49 on AT&T; Commercial Out (Video)

February 16, 2011, By Sanjeev Ramachandran

Following a price drop to $49 for the iPhone 3GS in early January this year, AT&T is now pushing the device more in the market through a newly launched ad campaign. The new campaign is meant to project the image of iPhone 3GS as an affordable budget phone at a time when the network rival Verizon has launched the iPhone 4 in their network.

The minimum phone plan with an iPhone 3GS device on AT& T now comes for a $55 monthly rate, along with $49 as the price of the phone. The drop in prices announced in January was widely seen as an attempt from AT&T to clear out most of the iPhone 3GS devices since the next generation iPhone device is expecting a summer launch. Apple had also dropped the rate of the iPhone 3GS to $49 then.

But now with the new campaign launched, it looks more like a challenge to Verizon’s iPhone plans than a clear out sale attempt. Verizon’s cheapest plan for the new iPhone 4 comes at $199 for a three year contract – with a monthly plan of $70.

However, the campaign from AT& T can raise considerable challenges to Verizon by eating up the market segment looking for an affordable iPhone. iPhone 3GS, despite being 19 months old, is still popular with its high quality camera, GPS and compass functionalities. Moreover, it runs iOS 4. Many of the apps in the app store are compatible with the device.

Here’s the AT & T commercial in case you haven’t seen it as yet.

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