Jan 10, 2011 14:24 GMT  ·  By

Sold with a two-year contract, the iPhone 3GS is now just $49 at Apple’s online and retail stores, following an announcement from AT&T last week that confirmed plans to have the handset’s price reduced at both companies’ purchase locations.

Apple advertises both the iPhone 3GS, and the iPhone 4 on its web site, saying “Whether you’re a new or existing AT&T customer, select your iPhone and sign up for a plan right here.”

“Then have your iPhone shipped for free to your door and ready to use. Or buy it at your favorite Apple Retail Store and get free Personal Setup,” the Mac maker states.

This description hasn’t changed in quite a while. However, the listings for the entry-level iPhone 3GS 8GB have, with Apple now posting a $49 price tag for the customer who accepts to tie their purchase to a new, two-year wireless service contract with AT&T.

Upon announcing the price cut last week, AT&T revealed that the offer would be available online at www.att.com/iphone, across more than 2,200 of its retail locations across The States, as well as through AT&T business channels, and Apple’s own retail establishments.

“We want to deliver the best, most complete package for our customers – from price, to speed, to worldwide access and more,” said David Christopher, chief marketing officer of AT&T Mobility and Consumer Markets.

Claiming to offer support for Apple’s iPhone 3GS by connecting it to the nation’s fastest mobile broadband network, the carrier touted the smartphone as being able to deliver the following advantages:

· Allows for true smartphone multi-tasking, such as talking and using applications at the same time, on AT&T’s mobile broadband network · Provides access to our entire national Wi-Fi network with nearly 23,000 hotspots · Provides the best global coverage with wireless voice and data access in more than 200 countries