A new report lands today which claims that Apple may be going to offer iPhone 3GS as a free subsidized phone, 2009 released version of iPhone, with a two-year service contract. This report comes from the analyst Mike Abramsky with RBC Capital Market, which believes that Apple will offer iPhone 3GS for free when the next generation iPhone 5 will launch sometime in the fall of this year. He notes in the report, this strategy of Apple would help mid-market buyers of Apple products, also help Apple in countering the growth of Google’s Android Mobile Platform.

Analyst Abramsky has also believe that this will double its potential market opportunities to the great number of 150 million more smartphones, also the lower-priced iPhone 3GS, which offered on $399 as a unsubsidized phone, would also increases the iPhone share globally. He also mentions that Apple may release its “Baby” iPhone in 2012.