Starting tomorrow January 7th you can get an iPhone 3GS for only $49 on AT&T. Of course it will require a new 2 year voice contract and at least a $15 per month data plan. My question would be why would you want a 3GS when the iPhone 4 is out?!
AT&T* today announced a new price for the popular iPhone 3GS — $49.00 — available beginning tomorrow, Friday, January 7, for both new and upgrade-eligible existing AT&T customers. The offer will be available online at 
Available only on the nation’s fastest mobile broadband network, iPhone 3GS delivers the following advantages unique to AT&T and its customers:
- Allows for true smartphone multi-tasking, such as talking and using applications at the same time, on AT&T’s mobile broadband network
- Provides access to our entire national Wi-Fi network with nearly 23,000 hotspots
- Provides the best global coverage with wireless voice and data access in more than 200 countries
"We want to deliver the best, most complete package for our customers — from price, to speed, to worldwide access and more," said David Christopher, chief marketing officer of AT&T Mobility and Consumer Markets. "Combined with our new, lower monthly data plans beginning at just $15 a month, this new price brings even more value to one of the most popular devices in our leading lineup of smartphones. We’re very excited for more people to experience iPhone on the nation’s fastest mobile broadband network."
iPhone 3GS gives users access to the latest iPhone iOS 4 software plus the revolutionary App Store. Additional information is available at www.apple.com.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
**Price for 3GS sold in Apple channels is determined by Apple.