Apple iPhone 3GS price drops to $97 at Walmart

Walmart announced that it will sell the 16GB Apple iPhone 3GS for just $97 with contract.

Walmart on Monday announced that it will sell the 16GB Apple iPhone 3GS for just $97 with contract.

The new price, which is effective starting Tue., May 25, is for new phones purchased with a two-year contract.

Walmart chalks the price reduction up to its "ongoing aggressive savings announcements," but the real reason is an expected new model of iPhone to be released next month. That model was accidentally leaked in April after an engineer for the company left a disguised prototype in a bar.

It's possible that the price will stick after the official announcement by Apple, which has previously reduced the price of the previous model to $99. (Currently, the iPhone 3GS retails for $199; the 2008 iPhone 3G sells for $99.)

Moreover, reports suggest that Apple is no longer accepting orders for the iPhone 3G --- paving the way for a new model.

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