All versions of the iPhone 3GS are dropped in price with a new $99 8GB model coming

Apple's unveiling of the iPhone 4 may have gotten a lot of people excited already over the new hardware, however, those a bit on the frugal side will be glad to see that the current 3GS models are getting a much needed price chop. Apple announced that all of the current versions of the iPhone 3GS are being dropped in price with your signing of a 2-year agreement – the 16GB will sell for $149 while 32GB one is priced at $199. However, Apple will also be making an 8GB version of the iPhone 3GS which will be priced at $99 and naturally replaces the 8GB iPhone 3G. Needless to say that the price point will make it extremely difficult for customers to pass up – especially when iOS 4 will be in full swing on the handset. As much as some would like to see the iPhone start to be sold for free on-contract, we'll see how this move will shake up the industry now that a capable smartphone can be purchased for very little.

Apple iPhone 3GS Specifications | Review
Apple iPhone 4 Specifications

source: AT&T