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iPhone 4s, iPhone 4, iPhone 3GS: Why did Apple Keep Three SKUs?

We were puzzled to see that Apple decided to stick to the 30-month-old iPhone 3GS for yet another year, which means that by June next year Apple may have a three year old phone in its portfolio.

We suspect that the main reason why the company chose this strategy, is to make sure that it has a handset that covers the increasingly competitive entry level where Android has been gaining significant marketshare,with the price of smartphones having dropped well below $100 or £100.

The iPhone 3GS has roughly the same configuration as the HTC Wildfire S but with a 50 per cent premium, and Apple said that it will be free on contract from all the major US network providers bar T-Mobile.

We believe though that the 3GS will be shortlived. Given that the Sony Ericsson Xperia Play, a vastly superior smartphone, can be had in the UK for around £150, it will be hard for Apple to justify keeping an obsolete model for very long.

This could either mean that Apple will revert back to a two-SKU model or will introduce an iPhone 5 when market conditions demand it. Which means that the new 8GB iPhone 4 could become Apple's new entry level smartphone before long.

Desire worked at ITProPortal right at the beginning and was instrumental in turning it into the leading publication we all know and love today. He then moved on to be the Editor of TechRadarPro - a position he still holds - and has recently been reunited with ITProPortal since Future Publishing's acquisition of Net Communities.