Walmart has announced that it is now offering the 16GB iPhone 3GS for $97. Like all past iPhones, these discounted iPhone 3GS units are new and require a two-year contract with AT&T. With Apple CEO Steve Jobs expected to unveil the next-generation iPhone during his June 7 WWDC keynote address, it is possible that the price drops are a precursor to Apple discontinuing the 8GB iPhone 3G, which is currently sold for roughly $100, and replacing it with the 16GB iPhone 3GS, while the new models fill in the traditional $199 and $299 price points. Notably, neither Apple nor AT&T has yet to drop their prices on 16GB iPhone 3GS models.
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