This is unlikely to gobsmack anyone, but with a new iPhone right around the corner, the days of the $99 iPhone 3G are likely numbered.
According to Boy Genius Report: ” We’ve heard that Apple has stopped shipping iPhone 3G 8GB units to AT&T stores and orders are not being placed for the device.”
The most obvious interpretation of this is that the iPhone 3GS will plug the place previously filled by the 3G as the entry-level AT&T iPhone… a guess that seems to be strongly evidenced by Wal-Mart’s recent decision to slash the price of the 16GB 3GS to a mere $97.