Pay-as-you-go iPhone may be on the way

People who still use the iPhone 3GS may find new life in the phone, according to one analyst. With the popularity of the iPhone 4 and 4S and iPhone 5 expected in the fall, the older 3GS may still have some life with this pay-as-you-go use, so iPhone repair for these older devices may be something people can do if they would like to save money on their phone service.

Jefferies analyst Peter Misek said Apple signed an agreement with a "major global distributor" that he believes will look for ways to develop and penetrate the prepaid market. He believes the phone will cost in the $200 to $250 range, so there will most likely still be some value in the older devices.

"With Mr. Misek expecting Apple to drop the wholesale price of the 3GS to between $200 and $250, the new low-cost, contract-free iPhone would compete well against Android and Windows Phone-based handsets in many countries and with many consumers for whom pre-paid phones are preferred, as well as introduce new customers to Apple’s lucrative app and media ecosystem," Mac Observer said.

IPhone repair may be useful for people who have an old 3GS lying around that was only cast aside because of a hardware issue. Working with a pre-paid system, the phone once again may have some value on the market.

Marcelina Hardy

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