AT&T had officially reduced the prices of iPhone 4 and iPhone 4S after the release of iPhone 4S. The two models of 8GB capacities were then priced at $99.00 and $0.00 respectively. However, AT&T has risen it up to a $0.99 now. On october 20 earlier this year, in the 1st announcement, the company had said,
Our lower price plan continues to be a good entry point for many subscribers and now that we offer a free iPhone with a 2-year contract for the first time ever, the iPhone 3GS, we expect to broaden the smartphone base even more.
It is not really explained why AT&T had to keep a negligible raise to the price tag while knowing that it wouldn’t affect much. Responding to the question, AT&T says,
iPhone 3GS is still available at an incredibly low price and we’re confident consumers will agree that this remains one of the best deals for a leading smartphone.
However, Apple is still giving the iPhone 3G for free with two years contract with AT&T. While he decision leaves many baffled, an AT&T employee says,
I work at AT&T, this is being done to help prevent fraud as the 99 cents cannot be billed to your bill. it must be charged to a credit or bank issued debt card. Fraudsters are using stolen identities to steal these handsets … been an issue since they went free.