A new rumor has surfaced that Wal-Mart will begin selling 4GB iPhones for only $99 later this month as part of their agreement to begin selling touchscreen handsets.
Apple's existing iPhone 3G offers of course include the 8GB and 16GB models, which sell for $199 and $299, respectively, and come with two-year contracts. Last year there was a 4GB first-generation iPhone briefly available that sold for $399 but it was discontinued only a couple of months later and when Apple decided to focus on boosting the 8GB sales.
The BoyGeniusReport has reported rumors that Apple may introduce a 4GB iPhone 3G and would allow Wal-Mart to sell it for $99 with a two-year contract. The BoyGeniusReport cites an internal memo, "that Wal-Mart has reached agreement with Apple to offer iPhone 3G in Wal-Mart and Wal-Mart-managed Sam’s Club Connection Centers nationwide beginning December 28, 2008."