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Walmart drops 16GB iPhone 3GS price to $97 with contract

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Retail giant Walmart on Monday announced that the chain would be selling Apple’s 16GB iPhone 3GS model for US$97.

Per The ToyBox, the new price, which becomes effective on Tuesday, May 25th, is for new phones purchased with a two-year contract.

Walmart chalks the price reduction up to its “ongoing aggressive savings announcements,” although a fourth generation iPhone to be released next month. That model was accidentally leaked in April after an engineer for the company left a disguised prototype in a bar.

It’s possible that the price will stick after the official announcement by Apple, which has previously reduced the price of the previous model to $99. (Currently, the iPhone 3GS retails for US$199; the 2008 iPhone 3G sells for US$99.)

Moreover, reports have come in suggesting that Apple is no longer accepting orders for the iPhone 3G, a move that typically paves the way for a new model.