Gifts for $25 or Less Spotify Wrapped Neuralink Brain Chip Black Hole Burps Light of 1,000 Trillion Suns Stamp Price Increase Streaming Services to Cancel Melatonin Rival Monkeypox Renamed
Want CNET to notify you of price drops and the latest stories?
No, thank you

AT&T raises iPhone 3GS 99 cents

In a curious and unexplained move, the telecommunications giant modestly increases the price of its low-end iPhone. That's probably not going to stop the demand.

The iPhone 3GS is no longer free at AT&T.

Better raid the piggy bank, because AT&T just raised the price of its low-end iPhone 3GS to 99 cents.

The iPhone 3GS was free with a two-year contract, but MacRumors spotted the modest price increase today.

It's a curious move by AT&T, which gets little payoff for the price increase, yet loses the ability to tout offering a free iPhone. With a third-quarter profit of $3.6 billion, AT&T certainly doesn't need the extra pocket change that comes with the increase.

Apple still offers the phone for free on its Web site, as does Best Buy. It's a reversal of the usual trend of phones going down in price, even if the increase is nearly negligible.

Of course, the increase of 99 cents isn't going to change anyone's mind about buying the phone. For the past few months, the iPhone 3GS sold perfectly well for $49 with a two-year contract. In fact, it's what has allowed AT&T to continue to hold a significant lead when it comes to iPhone users even with Verizon Wireless and Sprint Nextel carrying the newer iPhones, and has proven to be a steady driver of growth.

"IPhone 3GS is still available at an incredibly low price and we're confident consumers will agree that this remains one of the best deals for a leading smartphone," said an AT&T spokesman.

He declined to explain why the company raised the price.