In order to make additional shelf space introduce the new iPhone 5 at the same price as the iPhone 4S, Apple has had to adjust some prices.
The 16GB iPhone 4S dropped down to US $99 on a two-year contract, while 8GB iPhone 4 is now free. The new iPhone 5 will have the same price as the old iPhone 4S, when it was launched, so you are looking at US $199 for 16GB, US $299 for the 32GB one and US $399 for the 64GB one, but only on contract.
The old iPhone 3GS, that has been with us for over three years, finally threw in the towel and has gone the way of the Dodo.
As noted earlier, the new iPhone 5 ships on September 21.