iPhone 3GS Becoming Free Today, RBC Analyst Projects

RBC Capital Markets analyst Mike Abramsky issued a note to investors this week saying that Apple will most likely cut the iPhone 3GS to $0 by continuing to sell it with a two-year agreement through U.S. carriers. In this respect, the iPhone 4 will drop to $99 (or about 75 Euros).

Abramsky’s research note says his firm expects Apple to unveil a single new iPhone today, not two as many analysts boast.

He says it may be the iPhone 5 or the incremental iPhone 4S, but under no circumstances will Apple release a low-cost iPhone without innovating.

In fact, earlier this year, the Wall Street buff specifically noted that Apple would not roll out a new, cheaper version of the iPhone unless it provided an “innovative, category-killer experience,” according to Cult of Mac. And Abramsky doesn’t see that happening today.

Instead, he’s much more fond of his own theory that Apple will simply let loose one new device today, cut the price on the still-hot-selling iPhone 4, and make the 3GS model altogether free, albeit with the same two-year carrier contract that everyone has grown accustomed to.

The move would address a new niche in the consumer market, further expanding the iOS marketshare, giving Android-based phones a run for their money.

Abramsky proposition makes so much sense that all the iPhone 4S gossip out there now sounds like science fiction.

Then again, most analysts do have a hit-and-miss track record when it comes to predicting Apple’s next move, so let’s not jump to conclusions here. Apple will have the final say on this.

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