How would you like to give yourself a cheapskate’s Christmas tech gift? Boy Genius Report is saying they have unconfirmed reports that the 8GB iPhone 3GS will be sold by AT&T at the cut-rate price of $99. If AT&T and Apple confirms this early, it might stave off a Droid invasion in the touchscreen smartphone market. The iPhone 3GS 16GB currently sells for $199 with contract, while the prvious model iPhone 3G sells for $99 with 8GB of memory. It means Apple fears Droid. An $100 decrease 8GB iPhone 3GS will not significantly decrease revenues… that is, if iPhone 4G wasn’t suddenly announced, which would make the price cut a simple act of clearing inventory.

Editor’s note: we wrongly stated that there will be a $100 decrease from the current iPhone 3GS model. No, the 8GB rumor is an entirely new model in addition to the current 16GB and 32GB iPhone 3GS.

[via bgr]