$99 8GB iPhone 3G to be replaced with 8GB iPhone 3GS?

Take this with a pinch of salt but if couple of BGR sources are to be believed, Apple and AT&T might have something interesting for the consumers this Christmas. According to them, the $99 iPhone 3G will be replaced with an iPhone 3GS bearing the same 8GB capacity. The reasoning sounds a bit way off but is said that the price cut is done to combat DROID.
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