Will a $9 iPhone 3 Undercut Sales of Apple’s iPhone 5?

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By Douglas A. McIntyre

AT&T (T) is now offering an $9 iPhone. Granted, that price is for a refurbished 3 G3S-8G. But the handset provides the same essential functions as a brand new $199 iPhone 4-16GB. It can download the great majority of the 500,000-plus apps from the Apple (AAPL) App Store. It has a basic camera. And perhaps most important, it runs on AT&T’s 3G network.

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