“Canaccord Genuity analyst Michael Walkley says his retail checks show continued strong demand for the iPhone 3GS at AT&T and iPad 1 at Verizon, even as the iPhone 4 and iPad 2 continue to fly off the shelves.,” John Paczkowski reports for AllThingsD.

“At AT&T, for example, the iPhone 3GS is outselling newer Android phones like the HTC Inspire and Motorola Atrix,” Paczkowski reports. “Of course, at $49 the 3Gs is half the price of the Inspire and a quarter of the price of the Atrix, so cost is obviously a big factor here. Still, the continued success of Apple’s older devices in the marketplace suggests that the company, which is already winning at the market’s higher end, has a good shot of winning at its lower end as well–particularly if it ever releases a lower-tier iPhone-–one free of the required $70+ a month voice-and-data service plan.”

Read more in the full article here.