Wal-Mart Drops iPhone 3GS Price To $97 On 2-Year Contract

There's little to no doubt that Steve Jobs himself will introduce the next generation iPhone at the WWDC conference in California next month, but if you had lingering pause, maybe this is a sign of things to come. Currently, Apple's iPhone 3G sells for $99 on contract; a great price by any measure. The iPhone 3GS sells for $199 on a 2-year contract, which puts it in direct competition with many, many other smartphones on the market today.

But with a new iPhone on the horizon, there has to be room made for a newcomer. It's unlikely that Apple would price the next generation iPhone at a point above the $199 mark, which the previous two have debuted at. So if a new iPhone will sell for $199, what happens to the iPhone 3GS? Does Apple wipe it away completely? Probably not, since the original iPhone 3G is still available now for those unwilling to pay more for the iPhone 3GS.

Regardless of any of the possibilities, one thing is a fact: Wal-Mart will reduce the price of the 16GB iPhone 3GS from $199 on contract to $97 on contract starting today. There's no mention made of AT&T or other iPhone sellers following suit, but when Wal-Mart starts something, it usually doesn't take long for everyone else to follow suit.

So you have two options if you're in the market for an iPhone: save yourself some money on the current version by shopping at Wal-Mart, or just wait until WWDC and make sure it's the decision you really want to make.