AT&T Will Sell iPhone 3GS "Free" on 2-Year Contract

AT&T will be able to sell the Apple 3GS to customers in the United States "for no incremental cost" ("free") on two-year service contracts that must include a data plan.

Four years ago, the cheapest iPhone cost $400. Today, it's free, at least on the U.S. AT&T network. The move shows that growth in smart phone adoption now is moving rapidly into the mainstream, with most of the sales volume coming from mainstream feature phone users.

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