When it comes to Apple products, rumors are never too far away, constantly swirling around the Internet while sowing seeds of discord and confusion. Well, it is more or less confirmed that there will be a next generation iPhone coming your way (Apple won’t kill their goose which lays golden eggs, would they?), although speculation remains as to whether it will be known as the iPhone 4S or the iPhone 5. Still, an analyst believes that Apple might just sell the iPhone 3GS for free with contract when the next generation model comes around. If you decide to go off-contract, that might mean the smartphone would retail for around $350 to $400, while the iPhone 4 might see a drop to $100 – or $500 sans subsidies.

Might this move actually result in the 3GS being the budget iPhone? Even though the iPhone 3GS is said to be able to work with iOS 5, that does not mean all features of the updated operating system will be supported, so those who opt for the iPhone 3GS might end up being disappointed if they expect longer support from Apple in the future.

Filed in Apple >Cellphones >Rumors. Read more about Apple Inc, iPhone 3GS, iPhone 4S and iPhone 5.

Key SpecsiPhone 5iPhone 4siPhone 3GS
Display Diagonal4"3.5"3.5"
Processor/Soc NameA6, 2-core, 1.3 GHzA5, 2-core, 1 GHz
Street Price (Approx)~ $549
Search low iPhone 5 price (Amazon)
~ $190
Search low iPhone 4s price (Amazon)
Max. Total Storage Capacity64 GB64 GB32 GB
Megapixels8 MP8 MP3.15 MP
Battery Capacity (mAh)1440 mAh1432 mAh
Complete product dataApple iPhone 5 Full specs and detailsApple iPhone 4s Full specs and detailsApple iPhone 3GS Full specs and details
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