iPhone 3G only $99?

Times are tough and the holiday season is fast approaching, so we expect a lot of bargain deals to hit the shelves in order to lure customers.

This deal (its actually a RUMORED deal), however, we did not see coming. As you saw in the title, the deal is an iPhone 3G for only $99 on a 2 year contract! Yup, all that sweet multi-touch, 3G, App Store, GPS and iPhone goodness for under a Benjamin, an offer so cheap because it is coming from Walmart, who are well-known for their great deals and cheaper prices. One major drawback to the deal: only 4 GB of memory (this stinks, we know).

Hey, you can’t have everything 😉 , and if you plan on using your iPhone as an iPod as well, then this may not be the choice for you (4 GB is not a lot- maybe a couple movies or about 1,000 songs). We also assume you would still need to sign up for the $70 a month AT&T iPhone plan (only $30 a month if you’re adding to a family plan, as I found out when I went to an AT&T store a couple weeks ago) or some equivalent phone plan that perhaps will be cheaper per month because of the cheaper price of the phone.

But we just gotta ask- is this something you see yourself getting for the holidays assuming this is all true, and that Walmart gets this out the door soon (as in, before the end of the year)? Would you rather pay the extra $100-$200 to get an 8 GB or 16 GB? Or just ditch the iPhone all together and go for a phone like the Blackberry Bold, Pantech Matrix, Samsung Propel or other AT&T phone?  Let us know in the comments.

Remember: all of this is still a rumor at this point (though Walmart will be selling the standard iPhone 3G sometime soon).

Pix and info from Boy Genius Report.com