During today’s unveiling of the iPhone 4S, Apple also revealed that they will be slashing the price of the iPhone 3GS.

Phil Schiller, Senior VP of Marketing introduced the price cuts, stating that the 8GB iPhone 3GS would now be available for free on a two-year carrier contract, while the iPhone 4 will now cost $99 on a similar two-year contract. This is the first time Apple has offered an iPhone for free.

The prices will go into effect when the iPhone 4S becomes available on October 14th.

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