Apple has officially announced that it will discontinue production of iPhone 3GS which started was available for sale in 2009.
Last year, after the launch of iPhone 4S, iPhone 3GS became the first free smart phone with a two year contract. Due to this, Apple was able to capture another market segment for low level smart phones.
Starting this Wednesday, after iPhone 5 has been announced, iPhone 4S received its new price of $99 with a contract and iPhone 4 is now free of charge also with a contract.
Even though Apple has discontinued the manufacturing of iPhone 3GS, consumers of these smart phones are still eligible for the new iOS 6.0 (which will be released next week Wednesday) but not all features will be operable because of iPhone 3GS's limitations.