AT&T is currently offering their best deal ever on the iPhone 3GS, with refurb units (both cosmetic blemish and standard refurbs) going for $9 after new agreement and instant $90 discount as an online only promotion.
New in box iPhone 3GS units are currently offered by AT&T for $49 as the “entry-level” iPhone model for those who are either uninterested in the iPhone 4 or are looking for something more cost conscious ahead of the planned new iPhone announcement coming later this year.
With the current deal in place, speculation has increased that Apple will offer a cheaper entry-level iPhone directly at some point in the future. Apple typically positions the previous generation model with the least amount of storage as such until supplies are exhausted or carriers decide to stop offering them.
