Out With the IPhone 3GS, In With the IPhone 5

AT&T drastically dropped the price of the refurbished iPhone 3GS to $10 with a two-year contract, suggesting it may be clearing out its inventory before the release of the iPhone 5.

The Dallas, Texas-based carrier said a brand new 3GS will still cost $50. The iPhone 5 is reportedly set to debut in September as suppliers begin to ramp up production.

Analysts expect the iPhone 5 to have a similar exterior as the iPhone 4, but include more advanced features, such as a dual-core processor, 8-megapixel camera and 1080p video recording. These updates, which mark a slight upgrade from the iPhone 4, would create a substantial gap between the 3GS and current iPhone hardware.

Wireless carriers often cut the prices of old devices just before they release new products. When Apple rolled out the iPhone 4 last year, it dropped the price of the 3GS to as low as $100 with a two-year contract. Many analysts expect Apple will do the same when the iPhone 5 is released, putting the iPhone 4 at a reduced price.

In addition, the new iPhone 5 and continued sales of the iPhone 4 will likely mean the end of production of the 3GS. The new price will likely make the 3GS sell quickly, and once it’s gone it may never come back.

This post originally appeared at Mobiledia.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.