During the company's quarterly conference call, AT&T mobility CEO Ralph de la Vega noted that following the release of the iPhone 4S, iPhone 3GS demand has increased significantly.
AT&T dropped the price of the now two-year old device to $0 with 2-year contract, the first time an Apple smartphone has been available for free.
Added Vega (via Rumors):
We have another device that I ... [ read the full article ]
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Well no shit,3GS is free. Of course it will be in demand,people like free. This could be a good marketing scheme and get first time iPhone users on board.
3GS still isn't a bad option if you want an iPhone. The iPhone 4 didn't have many performance gains over it, just looked nicer and had a faster processor but the higher resolution ate up the extra speed anyways from what I was told. The 4S is "double" the 4 but still not a major necessary update in the iPhone world. You're smart to stick with a 3GS til the 5 arrives. I would have had I not sold mine for a HD2 to use with a different carrier that was cheaper.
The 3GS isn't free...you need to sign a 2-year contract with AT&T. Considering they cost more than T-Mobile and don't offer the same level of network quality, the contract is essentially a fee.