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We're only a mere two weeks away from Apple's annual developer event, the Worldwide Developers Conference, and the latest rumor on the docket is that Apple is no longer shipping the 8GB version of the iPhone 3G to AT&T stores, according to AppleInsider.
Boy Genius Report made mention today that Apple is no longer submitting the device to AT&T stores. Additionally, new orders for the unit are not being accepted either.
"Could this mean we might see the iPhone 3GS drop to $99 and make way for a new model? Or maybe the 3GS would disappear altogether? We're not sure," the BGR report said, "but we're about to find out."
Katy Huberty of Morgan Stanley mentioned today that she thinks Apple will be able to grab a $50 decline in average hardware selling prices by reducing the iPhone 3GS to $99. Huberty claimed that iPhone component costs have dropped 10 percent to 20 percent annually, which then would give Apple the capability to bring down the cost of the 3GS without even affecting any gross margins.
It should be noted that the average selling price of the iPhone with carrier subsidy included has been over $600 consistently.