And that, in line with these retailers' missions, it would be at a discount?
Well now we might know the price: $99.
BoyGeniusReport is reporting a new tip that Apple will offer a 4GB model priced at $99 with a two-year contract.
BGR cautions to say that the tip isn't from their usual sources, so take the rumor with a grain of salt (for now). But if you recall, Apple dropped the 4GB iPhone from its initial line-up, at a $399 price point, so it at least originally had plans for such a device.
And now that the iPhone is arguably more important as phone than iPod, 4GB doesn't seem like a drawback when you're getting the best-selling smartphone in the nation for a single Benjamin Franklin.