Walmart Slashes iPhone 3GS to $97

If there’s even been a more sure sign that new iPhones are coming in the immediate future, it’s the fact that Walmart (s wmt) slashed the price of Apple’s (s aapl) iPhone to $97, representing a savings of $100 if you’d purchased it from them last week.

Is this a result of new iPhones around the corner? Does Walmart still have a significant inventory of iPhones to sell off? Looking back a few years ago, Walmart was one of the first third-party distributors outside of Apple and AT&T (s att) to offer the coveted iPhone for sale.

With such a huge savings, one can’t help but speculate that a new iPhone is coming in the next few weeks and Walmart plans to have plenty of room to sell it.

The 16GB iPhone 3GS still carries the requirement of activation and a two-year service contract with AT&T. Couple this with AT&T’s recent increase in its early termination fee means that while this phone is a great value, it’s still going to be a while before you can upgrade to whatever Apple announces at WWDC in a couple of weeks.

Still, this could be a good value for some who may not wish to upgrade, who are dissatisfied with AT&T or who may not see any appeal in the rumored fourth generation iPhone. AT&T certainly hasn’t brought tethering to its customers and if the new iPhone does sport a front-facing camera, I get a sneaky vibe that the cost of the unlimited data plan is going to go up.

Walmart’s price for the 32GB iPhone remains unchanged at $297. Historically speaking, larger capacity devices tend to be the best sellers. Undoubtedly, the lower price on the 16GB iPhone 3GS will cannibalize sales of the larger iPhone, so it’s likely that Walmart’s stock of the smaller iPhones is very plentiful, compared to the 32GB version.

Adding to this news are rumors of a new iPhone around the corner is that Apple has slowed or stopped shipments of iPhones to its third-party vendors. Steve has something up his sleeve for week after next and Walmart intends to be ready.

Can you hang on two more weeks to see the new iPhone? Or is it time to upgrade your original phone to an iPhone 3GS for less than $100?