AT&T to offer iPhone 3GS for $49 starting Friday

AT&T is set to offer new iPhone 3GS’s to customers willing to sign up for a new 2 year service contract and data plan for just $49. The iPhone 3GS will be available from AT&T stores as well as Apple stores starting this Friday.
Currently AT&T offers a brand new iPhone 3GS for $99 with a 2 year service agreement, but also offer refurbished models for $49. Now however that it is set to change, with new models being offered at the refurbished price. The iPhone 3GS is still a very capable handset and can run the latest iOS 4.2.1 software with the omission of a few features.
Normally when these price reductions take place, AT&T and Apple are accused of dumping stock for a new product launch. Don't think this is the case this time; we are still six months away from the expected launch of the next iPhone.
What do you think? Let us know in the comments!
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UK editor at iMore, mobile technology lover and air conditioning design engineer.