$99 iPhone 3GS Rumored to Hit Shelves Soon

Rumors are circulating that Apple is gearing up to release an 8GB version of the iPhone 3GS. Though there is no word on a price for this model, speculation according to Apple’s past trends suggest it will retail in the area of $99 with the monthly contract, replacing the current and slower $99 iPhone 3G model.

These rumors of a low cost version of the handset stem from technology website “Boy Genius” which dug up internal memos from Canadian wireless provider “Rogers”. The documents, which can be viewed on the website, indicate that the company is running down their stock on the most recent iPhone 3G S models which hold 16GB and 32GB of memory in order to clear the path for a new 8GB edition.

There is currently no confirmation as to when the new model will be hitting store shelves, but it is widely believed it will be available for retail before the holiday season as the 16GB and 32GB 3G models run out of stock. A move like this will bring the popular handset to an even broader audience, especially in such times of economic woe.

This speculation comes along with a group of separate rumors that O2, the company that has exclusivity rights over the iPhone in the UK, is about to lose that deal. It is believed that the two biggest networks most likely to pick up the handsets are Orange and T-Mobile, the latter is already giving out iPhones to high-profile customers in an attempt to keep them from taking their business elsewhere.

If these rumors are true than it will mean the end for the iPhone 3G, the slower 8GB model released only last year which was also priced at $99 on its release and which followed a similar business plan that the 3GS model seems to be following.