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Note that they still sell the 3GS, right now.

I assume that once the 5 ships, the 4S will become the cheaper model, and the 4 will become the really-cheap model that the 3GS currently is.

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With the rumored iPad Mini, they just might continue making the 3GS instead of the 4. A non-retina cheapo iPhone option makes sense for prepaid and free phones, and it's supposedly the same display PPI as the iPad Mini, so it could share a lot of components.

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