Now this sure is an interesting rumor. The Boy Genius Report, citing 2 separate sources, reports that AT&T is soon planning to sell an 8GB model of its latest and greatest iPhone, the 3GS, for only $99. Currently, consumers can purchase an old 8GB iPhone 3G for $99, but if they want the faster and video recording capable iPhone 3GS, the only models available come in 16GB and 32GB flavors, with the base price being $199.
Interestingly, BGR notes that one of their sources stated that this move is in response to the upcoming Motorola Droid which happens to launch tomorrow. Unless you’ve been living under a rock (or have a life), the Motorola Droid has been getting rave reviews and has instantly catapulted itself as a true competitor to the iPhone. Whether or not consumers will respond remains to be seen, but if the Droid begins to generate some momentum, a cheap 8GB iPhone 3GS might be worth trying in an effort to slow down the Droid train.