Apple's decision to keep the 3GS available is huge. Previously, Apple has only kept two generations of iPhones on the market at any given time. But, keeping the 3GS out there shows that the company wants to compete at every level of the smartphone market, not just the high end. With the iPhone now on three out of four US carriers and available in low-end, middle and high-end configurations, Apple has “finally” declared all out war on Android.
Time will tell a lot: much of Android's growth has been due to its multi-carrier availability and wide range of pricing. Now what will be its shtick?