It's being reported that Apple could be prepping an iPhone to launch at the arguably attractive $99 price point.

US blog The Boy Genius Report has it from a once proven source that the company is prepping a cheaper 4GB model to be sold in US chain Wal-Mart for $99 on a 2-year contract.

When Apple first launched the iPhone in the States in the summer of 2007 it offered a 4GB model, but it was fairly quickly dropped from the line-up when the 8GB version proved more popular.

If Apple wants to keep iPhone sales momentum going - especially for the lucrative Christmas period - an inexpensive model with cut-down capacity could be just what credit-crunched consumers would snap up.

BGR warns that the tip is far from a cert, but we'll keep our ear close the ground for you just in case...