Walmart has announced that their stores in the U.S.will be selling the 16GB iPhone 3GS for $97, which is $100 under the current retail price, starting on Tuesday. It is being said that the 3G iPhone 8GB, which has been retailing for $99, will no longer be shipped to stores so the 3GS looks like it will be sliding into the affordable sub-$100 phone and making room for the next-gen iPhone 4, expected to be officially announced during WWDC 2010 when Steve Jobs gives the keynote speech on June 7th.

With so many new phones on the horizon including the 4G iPhone, U.S. based customers are going to have a serious decision to make. Snap up the very capable 3GS iPhone for under $100 (this price of course tying you into a 2 year contract with AT&T), or wait a few weeks and see what else comes about.