AT&T’s $50 iPhone 3GS Outselling Newer Android Phones

After almost two years on AT&T, the carrier recently dropped the iPhone 3GS’s price further from $200 to $100 to its current price of $50. Despite its age, the iPhone 4′s predecessor is still selling at a steady pace thanks to its new price.

While buyers are not getting the iPhone 4′s significant upgrades such as the Retina Display, A4 chip, and glass-and-steel design, they are still receiving a capable iOS 4 device fit for more basic needs at the least. It’s an economical choice for those that want the iPhone without paying an “iPhone premium.”

Even though newer Android phones are available at a similar price, the iPhone 3GS can hold its own in the more modern market, swaying buyers towards it rather than the slightly distinctive Android devices. Sales reflect this, with the 3GS outselling most other AT&T smartphones. (Of course the completely modern iPhone 4 does even better as AT&T’s best-selling phone.)

The sales data proves that there are a significant amount of people who would prefer a cheaper iPhone and have no issue losing some of the bells-and-whistles. Since it has been reported that Apple is developing a cheaper next-generation iPhone model to sell alongside the full-featured premier next-generation iPhone, the $50 iPhone 3GS deal’s success seems like it could contribute to a “budget (yet more modern) iPhone” coming to fruition.

[via Mobiledia]