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Apple To Launch $350 iPhone Ahead Of iPhone 5

Apple may launch a cheaper iPhone, one that costs as little as $350 SIM Free/unlocked (or around £350 if you live on this side of the Atlantic Ocean); that's according to the latest rumours that have emerged online.

Jonathan S. Geller of BGR writes that his source suggested that the phone, which may be the iPhone 3GS, ought to be launched before the iPhone 5 which is set to appear towards the end of summer, which dovetails nicely with earlier rumours about a mid-September launch.

The iPhone 3GS is a two year old handset that is currently available in the UK for £428; so a £78 discount would be good but not great given that it would be hardly good enough to support iOS 5 and next year's iOS 6 which is why we're not convinced that Apple will sell the iPhone 3GS as a £350 handset.

In addition, for that price, you can already get the LG Optimus 3D, a dual core smartphone with glassless 3D capabilities and significantly more firepower.

The other theory - supported by BGR - would be that Apple needs to get rid of existing iPhone 3GS stocks as quickly as possible before releasing a new entry level iPhone 4S a few months later.

It simply doesn't make sense for Apple to manage three different units spanning across multiple SKUs (capacity & colours).