This is going to be particularly hard on Nokia, which is trying to keep its head above water in that market. It’s also bad for Research In Motion and makers of the cheaper Android handsets. The iPhone 3GS may be yesterday’s news, but it’s still a very solid phone, and probably better than any other phone at that price.
Of course, this might be because AT&T is scared to death of the impending Verizon iPhone and is trying its best to stay relevant. But still, this is a great win for consumers and a bold move by AT&T.