Apple iPhone 3GS Still in Production

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Two years after its launch, Apple’s iPhone 3GS is still selling like hotcakes. While it’s not selling in the tens of millions like the iPhone 4S, the curvy, lower-powered iPhone still has a place among cost-conscious smartphone users who want an iPhone for a little more than free.

Since Apple launched the iPhone 4S, carriers like AT&T have reduced the prices of previous-generation iPhones to help push old stock even when new models have arrived. But in the case of the iPhone 3GS, AT&T has actually offering the device for free — or for $0.99, as per the latest price listing. Given the very low cost of ownership, users still opt for the 8GB iPhone 3GS even if it’s a two-year old technology.

DigiTimes says manufacturers from Asia are actually still producing millions of iPhone 3GS units. Apple has actually ordered 2 million units for 4th quarter 2011, and about 1.4 to 1.6 million units for Q1 2012. Analysts say that few other companies can match the strength of Apple’s brand, and even its strategy of differentiating devices. While most other brands will produce a low-end, mid-range and high-end device in new product lines, Apple’s offering on the low-end is actually an older model — its iPhone 3GS. The company has phased out the 16 and 32GB variant, and now only sells the 8GB variant brand-new with a carrier plan.

But aside from Apple’s two-year-old 3GS, there have been speculations that Apple might be producing a low-cost iPhone, and this was actually one of the rumors in the weeks leading to the launch of the iPhone 4S. Analysts say the iPhone 3GS is likely to be discontinued in full by middle of 2012, when Apple is expected to launch or announce an even newer version of the iPhone (iPhone 5?). For now, customers can still get their hands on an iPhone 3GS very cheaply while supply lasts. And with Apple producing millions of the 3GS still, that one dollar offer is likely to last a long time.