Apple ‘to drop iPhone 3GS’

The new update will mean that the 8GB version of the iPhone 4 will be the entry-level iPhone, probably given away free on £20 per month contracts, as the 3GS is currently. Sources close to retailers also suggested that an 8GB version of the 4S could be introduced.

The 3GS was launched in June 2009 and sold a million units over its first weekend alone. At more than three years old, however, it is no longer able to keep track with the latest features.

Three versions of the Apple iPhone 5 will be on sale, offering different storage options. Details of whether the iPhone 5 will also offer full 4G capabilities, allowing it to use 4G networks launching in Britain later this year on the Orange and T-Mobile networks, remain unclear however.

The sources close to retailers added that the device is expected to go on sale in the week of the 21 September, as previously suggested.

The iPhone 5 will also be one of a new generation of phones, including the Nokia Lumia 820 and 920 announced yesterday, that will use a new, 40 per cent smaller nano sim. The sim card will require existing users to change their current sim when they upgrade. As with the process for changing to the current micro sim, consumers will be able to swap their existing sims over the counter in mobile networks shops and in phone retailers.

The micro-sim is 15x12x0.76 mm, compared to the nano-sim’s 12.3x8.8x0.67 mm.

The new smaller sim card allows for thinner designs and gives more space for improved cameras and battery, and is in-keeping with the previously reported decision by Apple to promote the wireless Airplay technology rather than to use the existing dock connector for speakers and other accessories.

An Apple spokesman said the company does not comment on rumours or speculation.