Late last week AT&T held a conference call wherein, amongst other topics, what offering the iPhone 3GS for free has done for the company. After all, it’s now being offered for free with the signing of a two-year contract with AT&T.
Ralph de la Vega, AT&T Mobility’s President and CEO event noted that the company was seen “tremendous, tremendous demand” for the device, even though it’s two years old. They also noted that they are collecting more new subscribers on the 3GS as compared with most other devices in their arsenal.
Lastly, de la Vega noted that AT&T, just like Apple, saw slower sales this quarter because of the delayed launch of the iPhone 4S. He expects those numbers to rebound for holiday shopping quarter.
In other words, it’s a two year old device, but if you slap “free” on it, you’ll move a bunch of them. I wonder how long it will take these new subscribers to figure out that they really didn’t save anything in the long rung. There still going to be spending $2000+ for the service plan like the rest of us. Still, I find the psychology of this fascinating.