Will Apple Offer The 3GS For Free On Contract When The iPhone 5 Is Released?

If you’re looking to get yourself an iPhone, but the plans are just too expensive for your tastes, there is a slight chance that you might be able to get one for free when the iPhone 5 comes out. Okay, to be clear, there are “reports” circulating that Apple is looking to offer up the iPhone 3GS for free on contract when the iPhone 5 (or whatever it’s going to be called) comes out. Note that this is the 3GS, not the iPhone 4, which means you will be two generations behind what everyone else will be using.

This is believed to be in conjunction with Apple supposedly coming out with a more budget-friendly iPhone, which some have dubbed the iPhone 4S. Analyst Mike Abramsky with RBC Capital Markets said, “While a $49 iPhone is already available (AT&T), psychologically a $0 iPhone provides a compelling offer, proprietary survey data… suggests 14% are very/somewhat likely to buy the iPhone 3GS for free with 2-year contract, exceeding buying interest for the iPad (13%) and original iPhone (9%).”

The good news is that if his report is true, iPhone 3GS users will still be able to enjoy the iOS 5 update although we’re guessing that performance won’t be optimal. If the report is wrong, there’s still the iPhone 4 to consider, which we’re guessing will be even cheaper, if not free.