If you’re looking for the cheapest iPhone currently available, AT&T wireless has dropped the price of its refurbished iPhone 3GS to $9 when purchased with a 2-year contract. The refurbed 3GS has 8GB of memory and comes with free shipping and a 30-day return policy.

That means the cheapest way to own an iPhone through a carrier currently looks like this:

iPhone 3GS w/ two-year contract = $9 +
$15/month 200 MB data plan for 24 months = $360 +
$40/month Nation 450 voice plan for 24 months = $960

Total Cost: $1,329

That’s not bad compared to what the true cost of the iPhone used to be, although we do have a piece of advice for those interested in this deal: buy a refurbished iPhone 4 instead. It’s just $90 more, you get a 16 GB version, and, in our opinion, it’s a much better phone than the 3GS.

Here is AT&T’s official description of refurbished iPhones:

Refurbished phones are previously owned devices that have been unused or lightly used and returned during the 30-day trial period. Each refurbished phone is independently quality tested and loaded with the latest software to meet current factory standards. Some refurbished iPhone 3G devices will have minor scratches.

Refurbished iPhone devices carry a limited warranty based on the original purchase date of the iPhone. The remaining coverage will be at least 90 days and will vary by device. If you purchase the AppleCare Protection Plan for iPhone, your coverage duration will also be tied to the original purchase date of the iPhone and will vary by device. For specific coverage details, please enter your iPhone serial number at apple.com/support/oss

The next-generation iPhone 5 is being held up by an overheating problem with Apple’s dual-core A5 processor, claims a report from Chinese news outlet Sohu. While the A5 chip has been powering the iPad 2 without problems since March, the new iPhone 5’s “thinner and lighter” design is causing cooling problems for the chip, say sources speaking to Sohu.

The delay doesn’t mean a new iPhone won’t be released this fall, however. Sources say Apple will instead release the iPhone 4S with a dual-core A4 processor, an upgraded edition of the previous-gen iPhone 4 released in the summer of 2010. The iPhone 4 continues to sell quite well despite its age.

The sources indicate that Apple will wait for a new 28nm manufacturing process next year to introduce an A6 chip into a completely redesigned iPhone and leap ahead of its competitors. Apple’s current A5 chip is manufactured on a 45nm process. A report from Reuters claims Apple is already testing the A6 processor with manufacturer TSMC.

Sohu claims the upgrades coming to the iPhone 4S include an 8 MP camera, gorilla-glass screen, and a dual-core version of the previous-gen A4 chip to give the new phone a speed bump. The new phone will also support 4G, says the report.

It’s just a barebones, nondescript piece of internal hardware, but Chinese website Apple.Pro, a previously reliable source for Apple hardware leaks, claims it’s the docking connector for a redesigned iPad 3, due out this fall.

The article claims that the images, which come from a source cheekily labeled “Deep Throat in California,” show an iPad docking connector that is completely redesigned from the one in the iPad 2. The article speculates that the next iPad won’t be an iPad 2 upgraded with a Retina Display, as a recent rumor has indicated, aka the “iPad 2 Plus,” but rather a completely redesigned iPad 3.

The source notes that the new docking connector’s part number, 821-1259-06, differs from the one used in the iPad 2, 821-1180-A, and offers that as proof of an upcoming redesigned iPad 3. The article also points out the connector’s end is white, indicating there will be both a white and black version of the iPad 3.

When game developer Trendy Entertainment discovered footage of their upcoming game, tentatively titled Afterlife: Ground Zero, was making the rounds online, they decided to release their own “leaked” trailer that shows off the game’s impressive graphics. Built upon on the Unreal 3 Engine, the game will be a “co-op survival horror game,” with its release date currently unknown. Check out the footage below:

The developers told iOS-gaming site Slide to Play that the game is still in the very early stages of development. A demo of the game they made running on an iPad 2 was sent to its business partners to show off the graphics, but somehow it got leaked online, so they made this official “leaked” trailer in response. The developers note that the user interface will look completely different than the crude outlines shown in the video.

We concur with Slide to Play in saying this will easily be one of the best-looking iOS games whenever it becomes available.

*Updated 10-8-2011 With Sprint Pricing*

With Verizon putting an end to its unlimited iPhone data plan, the dust has finally settled enough on data-plan pricing for us to compare the costs of the two major carriers in US.

In terms of being the cheapest, AT&T wins hands down. Their lowest tier data plan costs $15 for 200 MB of data. In comparison, Verizon starts off at $30 for 2 GB. AT&T also offers the cheapest tethering plan, offering 4 GB of tethering as part of their $45 data plan. Verizon’s tethering starts at $50 for 2 GB, hardly a bargain. While AT&T may be the cheaper service, quality is a different matter. In any case, below is a chart showing data plan pricing for the two major carriers.

*AT&T’s tethering is included as part of their regular $45 plan. It cannot be purchased separately for other data plans.
**Sprint does not separate out its data plan pricing from its voice plans. Its minimum plan is $70 for 450 voice minutes, unlimited data, and unlimited text messaging.

Website Chip Hazard is reporting that members of the AT&T Mobility team have been given preproduction versions of the iPhone 5 to test on their network. According to the site:

Our sources claim that the next generation iPhone is in the hands of beta testers right now. They are running tests, including but not limited to signal reception and connectivity tests. They have been given the pre-release version of the iPhone 5 and as soon as they are done with the testing phase, the final work would be sorted out and Apple would then direct manufacturers to start producing hundreds of thousands of new iPhone 5 units, so that they could be timely shipped to millions of anxious iPhone users, and prospective iPhone owners, around the globe.

Although this rumor’s source is unknown to us, the protocol of wireless networks testing out new iPhones before giving final approval has been used before. For the CDMA iPhone 4, Verizon was given pre-production versions two weeks before its release for testing purposes. Staffers were required to enter in a pin code every 12 hours. If they didn’t, the iPhone would lose all functionality. There was so much secrecy surrounding that launch, Verizon employees testing it weren’t allowed say the word “iPhone,” rather they referred to it as ACME.

If the AT&T-testing rumor is true, then the next iPhone could as close to mass production and release as two weeks.

You may have heard of Google+, the new social network and Facebook competitor from Google, but have you heard of the iPad 2+? Taiwanese website DigiTimes today reports that market sources indicate the next version of the iPad will be called the “iPad 2 Plus” and will be “thinner than its predecessors yet with upgraded display.” The sources also claim that Apple is looking for a second manufacturer to build the next iPad alongside already selected Foxconn. Taiwanese-based Pegatron is dubbed as the most likely.

Rumors have picked up recently about Apple releasing the next iPad as early as this fall, but with the iPad 2 released just a few months ago in March, some believe Apple will market the next iPad as a Pro version of the iPad 2 to avoid aggravating consumers who recently purchased the iPad 2. A premium, higher-priced iPad also could be a way to push the device into Apple’s economies-of-scale strategy that makes it easier to bringing cutting-edge tech to the mainstream by lowering prices over time.