Many might regard the third generation of the iPhone as an end of life device, but analysts have pointed out that Apple will try to revive the 3GS model. Peter Misek at Jefferies, suggests that Apple has closed a deal with "a major global distributor", in order to push iPhone 3GS to pre-paid and developing markets.
Currently, customers from mature markets interested to get an iPhone 3GS don't have to pay, but the phone comes with a two-year contract. The carriers are willing to subsidise Apples' handsets due to their popularity among subscribers, who are looking to get the iPhone experience - even at entry level.
Peter Misek believes Apple is willing to cut down the prices carriers pay for the iPhone 3GS, from $375 to $200 (from £237 to £127). The move might be to compensate what is expected to be a slow quarter.
Analysts are warning that iPhone sales will fall, ahead of the release of the frantically rumoured iPhone 5 or new iPhone. In his recent research note, Misek also suggests iPhone manufacturing estimates for the June quarter are inaccurate. He says that Apple's partners will be able to ship 28 to 30 million handsets this quarter.