RUMOR:AT&T To Launch $99 8GB iPhone 3GS?

The DROID is out and so are AT&T rumors. Are they really planning on launching a $99 iPone in time for Christmas shopping?

If true, a $99 8GB iPhone 3GS would allow Apple to stop manufacturing the current 8GB iPhone 3G which does not have the features of the 3GS such as more RAM, a speedier processor, and a better camera.

The DROID, priced at $200, has been  voted most likely to compete with the iPhone. But surely  a $99 iPhone 3GS could easily backfire on DROID. The Droid has  has a better camera, free turn-by-turn GPS navigation from Google and 16GB of storage but the iPhone has billions of apps.

Hmm…

Which one would you go for? let us know.