AT&T to Start Selling iPhone 3GS for $49 - KMOV.com

AT&T to Start Selling iPhone 3GS for $49

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Daniel Rudofsky, 21, holds his new iPhone after standing in line outside the Apple Store in the Georgetown neighborhood of Washington, on Thursday, June 24, 2010. (AP Photo/Jacquelyn Martin) By Jacquelyn Martin Daniel Rudofsky, 21, holds his new iPhone after standing in line outside the Apple Store in the Georgetown neighborhood of Washington, on Thursday, June 24, 2010. (AP Photo/Jacquelyn Martin) By Jacquelyn Martin

DALLAS (AP) -- AT&T Inc. will start selling the previous-generation iPhone -- the iPhone 3GS -- for $49 starting Friday to customers who buy the smart phone with a two-year service contract and data plan.

The wireless company, which is the exclusive U.S. carrier for the iPhone, made the announcement Thursday. AT&T said it will include iPhone 3GS devices sold through AT&T and Apple.

The iPhone 3GS was released by Cupertino, Calif.-based Apple Inc. in 2009 and had been sold for $99 by AT&T and Apple since the release of the iPhone 4 last June. It can use the same iOS4 software as the iPhone 4.

AT&T, which is based in Dallas, is currently selling refurbished iPhone 3GS' on its website for as low as $49.

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