AT&T has announced a new price for the iPhone 3GS (US$49) starting Friday, Jan. 7, for both new and upgrade-eligible existing AT&T customers. That’s down from $99.

The offer will be available online at, across more than 2,200 AT&T retail locations nationwide and through AT&T business channels, as well as Apple channels. The handset has an 8GB capacity and requires a two-year service contract.