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It's been thrown around a couple of times including some suggesting that it could be free with contract. I'll believe it when I see it. Apple doesn't respond, Apple innovates. I doubt that they are overreacting to the Droid given its record-breaking sales numbers.
 
I saw this and I know it's just a rumor, but this is a rumor site.
I did a search and didn't see this:

http://www.techeblog.com/index.php/tech-gadget/droid-launch-might-be-spoiled-by-99-iphone-3g-s

a $99 3GS would be pretty cool.

funny because i seem to remember hearing from a Rogers CSR about an 8Gig 3GS but... i could have misheard the rep and he could have been talking about a 3G.

in other news the Futureshop and the (new) best buy are both selling 16 gig 3GS models for 699$ (CAD), but you will in order to use the phone need to sign up with telus, bell fido or rogers.
 
When I first read this I got kind of mad, clicked the link and read "8GB" and was relieved.

But to be honest, I don't think this will happen. I mean, if it does then what will happen to the 8GB 3G? They'd have to stop production of it or lower it to $49.
 
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