Starting today, you can get iPhone 3GS 16GB model for $97. This is more than $100 off from the $199 suggested retail price. This pre-Memorial Day deal still require a two-year contract from AT&T, the exclusive iPhone carrier.
This price reduction is predicted as Apple is slated to release new 4th generation iPhone model next month. The price for iPhone 3G was similarly slashed before Apple introduced iPhone 3GS last June. The difference this year is the new 4th generation iPhone might be made available to more carriers. You might reconsider if you prefer other carriers than AT&T. All the answers to the new iPhone will be known when Steve Jobs takes to the stage for the WWDC keynote on Monday June 7.