AT&T is cutting the price it charges for the iPhone 3GS by half. Beginning Friday, January 7, you will be able to purchase the handset for $49. The price charged for each of the iPhone 4 models remain unchanged.

Why is AT&T dropping the price of the iPhone 3GS now? Typically vendors do this to clear inventory ahead of a new model coming out. However, no one expects Apple to announce its fifth generation iPhone until this summer.

Could it be that AT&T is trying to lock users into a new two year contract before Verizon releases its own iPhone 4 model?

What do you think? Why did AT&T drop the price of its iPhone 3GS model? Leave your comments below.