Walmart is set to cut the price of the Apple iPhone 3GS 16GB by more than half to only $97 when purchased with a two year contract.
Businessweek says that the move is yet another confirmation of Apple's impending release of a new mobile phone as it slashes the price of existing stock.
The iPhone 3G is currently available from Apple for $199 and from Walmart for $197. The announcement comes a few weeks before the next iPhone 4G is expected to be released at the annual WWDC.
The developers' conference, which starts on the 7th of June, will focus on mobile applications, according to this year's theme, a "Universe of Apps" and last year's iPhones were also announced at the same event.
Apple is also likely to phase out completely its entry level 8GB iPhone 3G, the last remaining member of its second generation family. From June this year, the iPhone 3GS is likely to become the new entry level as the iPhone 4G is introduced.
Apart from the fact that the iPhone 3G is no longer competitive with many current competitors sold at the same price level, there's also the fact that it will not support one of the iPhone OS 4.0's main feature, the ability to multitask.