Insider sources claim that “Apple is in the final stages of prepping a bargain-basement priced iPhone, which would undercut the Droid, and bring the Droid launch party to a screeching halt.” In other words, you might be seeing a $99 iPhone 3G S (8GB) as early as next month.

Meanwhile, many bloggers have whipped themselves into a frenzy over a second Droid smartphone, which is being manufactured by the Taiwan company HTC.

[via CSMonitor]