With the release of the iPhone 5 this Fall, Apple is reducing the stock and availability of the iPhone 3GS. Rumor is Apple is preparing two next-generation iPhones for this Fall: one being the redesigned iPhone 5, the other being similar to the current iPhone 4 called iPhone 4S and possibly a pre paid model.

Apple gradually tightens its shipments and production of products ahead of its upgrade or discontinuation. This minimizes already-replaced product inventory from the company’s product lineup (which Apple often just moves to “refurbished”). This iPhone 3GS situation is a prime example of this process.

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