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I'll sell you an iPhone 6, as long as you're not picky about the product version being written on a sticker.

Once Apple can put the tech that would justify a jump from 4 to 5 and retain their (50% of ASP!) margin, they will.

Idly, I wonder if they're getting a sufficient cut from the carriers to make the 3GS at no cost profitable, or if rather this is what they mean to do with their cash hoard: chase market share AND increase profitability.

DISCLAIMER: I used to work for Apple. I have no specific knowledge about the phone.

The prices you saw are the carrier subsidized prices. The carriers buy the phones from apple and then subsidize the cost, and try to make a profit over the length of the contract.

The presentation was a little bit sloppy, because previous presentations would have footnoted that these were with a new 2 year contract prices, not "we're selling these phones at these prices".

I understand that part. I'm just amazed that the demand for the 3GS is sufficient, and AT&T desperate enough, for Apple to retain the tooling to build them.

Yeah, they are smoking crack, no screen bump no money.

Lots of AT&T 3GS owners just out of contract, though. They'll probably go for the 4S. And Apple gets to save the iPhone 5 for another big announcement in 6 months.