iPhone 3GS to be the low end iPhone?

Apple never has to announce anything to stay in the spotlight of the news, and this latest rumor stems from an analyst at BMO Capital, Keitch Bachman. Apparently when the next generation iPhone arrives later this year, something interesting is going to happen: Apple will be discontinuing the iPhone 4. According to Bachman, the “low-end” iPhone that Apple will be keeping around is going to be the iPhone 3GS.

Is it because the next generation iPhone will look too much like the iPhone 4 that there’s no point in keeping it around? Well until we’ve got final confirmation from Apple, we’ll just take have to these rumors with a pinch of salt. Is Apple keeping the 3GS around too farfetched or does it make sense to you? Drop us your thoughts in the comments below.