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iPhone 5 Release Date: Free iPhone 3GS Sold Out at AT&T's Online Store

There has been a rekindled demand for the iPhone 3GS ever since the release of its latest successor, the iPhone 4S; AT&T reports that the third-generation smartphone has sold out at its online store.

At the iPhone 4S unveiling on Oct. 4, Apple announced that the iPhone 4 and iPhone 3GS would receive price cuts.

The 16 GB and 32 GB iPhone 4 models are retailing for $149.99 and $199.99 respectively while supplies last, and the 8 GB iPhone 4 is priced at $99.

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The iPhone 3GS is currently free with a two-year contract; however, it has been out of stock at AT&T's store online for weeks.

"We've seen a tremendous, tremendous demand for that device even though it's a generation old," said Ralph de la Vega, AT&T mobility chief executive officer, at a media event.

The iPhone 3GS, released in 2009, is exclusive to AT&T. The network saw a similar influx of iPhone 3GS sales when the iPhone 4 was released in 2010.

Before the release of the iPhone 4S, analysts suggested that millions of 3GS users would upgrade their iPhones. However, many Apple enthusiasts remain disappointed that the iPhone 4S did not receive external updates.

It remains unknown how many iPhone 3GS’s have been purchased since it became free with contract, but AT&T recently announced the network has activated over 1 million iPhone 4S’s since Oct. 14.

Industry experts suggest that the iPhone 3GS being free with contract in conjunction with an iOS 5 update makes it an extremely attractive phone. It is the first free iPhone in Apple’s history.

The iPhone 4S, iPhone 4 and iPhone 3GS make up 56 percent of all smartphone activations on the AT&T network.

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