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iPhone cost is slashed by WalMart

Retail giant WalMart is slashing the price of an iPhone 3GS by $100. There are reports that Apple is about to announce an updated version of the smart phone next month.

By Associated Press / May 25, 2010

An Apple iPhone is shown at a Best Buy in Mountain View, Calif., Wednesday, April 7, 2010. WalMart has announced it is slashing the cost of an iPhone 3GS this week.

AP Photo/Paul Sakuma

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Seattle, Washington

Wal-Mart says it's cutting the price of the most up-to-date iPhone in half. That's another sign Apple is getting ready to unveil a new model.

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Wal-Mart says that starting Tuesday the iPhone 3GS with 16 gigabytes of storage space will cost $97 with a two-year contract with AT&T. It currently costs $197.

Leaked prototypes for an updated iPhone surfaced on blogs recently. The price cut could signal retailers are clearing the shelves to make room for a new Apple smart phone.

Apple declined to comment on whether it's planning to release a new iPhone soon, or whether it will also sell the iPhone 3GS for less.

The company's annual developer conference kicks off June 7. Apple unveiled the iPhone 3GS at the same event last year.