The iPhone 3G S is now just $97 at Walmart when purchased with a new 2-year AT&T service contract. Insider sources are speculating that the retailer is aiming to clear their inventory in preparation for Apple’s rumored iPhone 4G / HD.

At $97, Wal-Mart’s price slightly undercuts the $99 price tag several analysts anticipated for the remaining iPhone 3GS stock. When consumers get sight of a new iPhone model on the horizon, sales of the existing model typically falls off sharply.

[via CNN]