Today Apple has discontinued the iPhone 3GS. This is not a surprising move, as the company today announced its new phone, the iPhone 5.

A price decrease for the iPhone 4S has squeezed the iPhone 3GS from the market. Its time in history is over. The iPhone 4S is now $99. The iPhone 4, which will be an 8 gigabyte model, will be free. All those phones will run iOS 6, whilst the iPhone 3GS would not have been able to fully support the new code.

At those price points, Apple will apply pressure to Windows Phone’s newest phones, which are trying to open new space on the lower end of the market. With a ‘free’ iPhone, a low-cost iPhone, and a top-of-the-ticket device with up to 64 gigabytes of storage, Apple’s phones will hit all price points with top-tier hardware.

For TNW’s full take on just what is in the new iPhone, head here.

At its event today, Apple reiterated much of its plans for iOS 6, which is due September 19th. That launch date was news this morning, along with the updates for the iPhone line.

Today, in public trading, Apple’s stock has been largely flat, gyrating between up and down around a percent. That could either indicate a market reaction of ambivalence, or the fact that the news announced today was expected, and thus already priced into the company’s stock price.

 Apple discontinues iPhone 3GS, replaced by free iPhone 4 on contract

Featured image: William Hook