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Wal-mart reduced its price for the iPhone 3GS, in anticipation of a new iPhone that is expected to be announced on June 7. Walmart has rolled back the price by a $100.
The 16GB iPhone 3GS is at $197 on a 2 year service contract with AT&T, so $97 is a considerable savings.
The $97 deal requires a two-year service contract with AT&T and the roll back or price cut seems to be available only int the US.