Apple sells the 3GS in the low end market.
Edit: My view may be too US based, but the 3GS costs nothing after carrier subsidy.
Edit: My view may be too US based, but the 3GS costs nothing after carrier subsidy.
Edit: Response to the parents edit: Yes, your view is US-based. If I buy a phone and get a phone contract without subsidy, my contract is cheaper - up to 10 euros/month. I'd be surprised if that's much different in the US - you always pay for the subsidy in one way or another.