"Interestingly, our April checks indicated continued strong demand for the iPhone 3GS at AT&T and iPad 1 at Verizon, as these older generation products with reduced prices often outsold new Android products. We believe this highlights Apple's significant competitive advantage, and these older products help Apple offer a tiered pricing strategy at key channels."
In honesty this is not really surprising since many people simply are looking at price when buying something like a cell phone. At $49 dollars the iPhone 3GS is one of the cheapest phones on the market period too by it is on an inferior network...
Given time, I would expect that Android-powered tablets will overtake iPads just like Android overtook iPhones. Still, you have to hand it to Apple for having such a great market share. Although I'd prefer an Android phone over the iPhone 3GS, the price for the 3GS is certainly appealing.
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