Apple reportedly plans to release a version of iPhone 3GS with 8GB of memory at the price of $99 with contract. While the rumour is unconfirmed, it is likely that at some point the company may launch iPhone 3GS 8GB at low cost to address the market of consumers in budget.

Rogers stores in Canada are presently transitioning Apple iPhone 3G 8GB that costs $99 with contract to Apple iPhone 3GS 8GB that will be available at the same price, a news-story from Boy Genius Report web-site claims.

Although the information comes from unofficial source, it seems to be rather logical. Apple has been trying hard to sell iPhone 3G inventory for several months while gradually reducing manufacturing of the model. As a result, at some point there will be no 3G models, but a lot of 3GS models to sell to those, who cannot afford a more expensive iPhone 3GS.

Apple iPhone 3GS is very similar to the 3G model and features almost the same 3.5” touch-screen with 480x320 resolution, which now comes with special covering that should mask fingerprints. The main differences compared to the existing models is 600MHz ARM Cortex A8 microprocessor that enables higher performance of applications, PowerVR SGX graphics core that provide better performance of graphics as well as 256MB of random access memory (vs. 128MB of earlier models). Besides, Apple promises longer battery life for the new iPhone 3G S as compared to predecessors.

Less important differences are 3.0MP camera with autofocus and macro shooting support, a new built-in digital compass for instant navigation, voice control support and some other improvements. The iPhone 3G S also includes support for quad-band GSM, EDGE, UMTS, 7.2Mb/s HSDPA, 802.11b/g Wi-Fi and Bluetooth 2.1 wireless technologies. Traditionally, the 3GS model sports audio and video playback capabilities, assisted GPS function and so on.

Apple iPhone 3GS is available in the U.S. for a suggested retail price of $199 for the 16GB model and just $299 for the new 32GB model in both Apple and AT&T’s retail and online stores, Best Buy and Wal-Mart stores. iPhone 3GS requires a new two year contract with AT&T for qualifying customers.

Apple did not comment on the news-story.

Tags: Apple, iPhone