In a move that supports speculation that Apple will be announcing their latest iPhone model next month, Walmart has lowered the 2-yr on-contract price of their AT&T 16GB iPhone 3G S to just $97 as reported by CNN Money.

iPhone 3G S

That’s a total of $102 worth of savings from its original price of $199. This, in turn, strongly suggests that they want to move as many iPhone 3G S units out the door as possible in order to make room in their inventory for the much anticipated iPhone 4G which, rumor has it, could eventually be launched as the iPhone HD. Even though the iPhone 3G S may be soon replaced by a newer iPhone, you’ve got to admit, $97 for a 16GB iPhone 3G S (with a 2-yr AT&T contract) is still a pretty tempting offer. Will local carriers and retailers in Canada follow suit as well? We don't, but we certainly hope so.

Be that as it may, it wouldn’t hurt to wait for the announcement of the 4G iPhone first before making any hasty decisions as we strongly believe that once it’s officially unveiled, the iPhone 3G S will be in for more price cuts down the road.