Walmart has begun selling the 16GB iPhone 3GS for just $97 - which is $102 less than it did previously. Users will still need to take a 2-year deal with carrier AT&T though.

The reduction comes ahead of Apple's World Wide Developers Conference, which begins in less than 2 weeks, where Apple is expected to launch its, much leaked, next generation handset.

Walmart's move comes as reports continue to develop stating that, as a result of the next-gen iPhone, the price of the 3GS will be dramatically cut across the board - to an estimated $99. (Tip- get yourself to Walmart, save yourself a couple of bucks).

It's hoped that the price reductions will be mirrored in the UK. Sure, you can get a 16GB iPhone 3GS here for free on certain contracts, but if you're not wanting to pay at least £45 a month for 2 years, then you're still looking at big money.