According to a story on, Wal-mart will cut the price of the Apple 16GB 3GS iPhone to $97 starting today.

At the new price, customers will save $100 on Apple’s smart phone, which currently sells for $199. The deal requires that the phone be purchased with a two-year contract from AT&T, the iPhone’s exclusive service provider.

See the caveat of this great price cutting deal is that it will require a two year contract to get that sub $100 price tag for the phone.  Sounds like a great deal until you realize that Apple is likely to release the newest version of the iPhone this summer. If that happens it leaves those who purchase this deal in a two year limbo period while they wait for the next opportunity to upgrade their phones after getting locked into the extended contract.

I agree with the CNN Money story – this is likely a cut intended to move phones remaining in inventory before the release of the newer handset and Apple would not be the first manufacturer to do this type of thing.

I guess this is a good way to get yourself into an iPhone if your not interested in having the latest version and your willing to lock into that new contract for two years.

If that is you then this just might be the deal your looking for.