Tomorrow the US$99.00 iPhone 3GS will be half that. That's the word from the Wall Street Journal and other media outlets. It's not a big surprise. AT&T will likely lose iPhone exclusivity any time now, and they want to lock customers in to 2-year contracts before that happens. It's also not the first sale on the 3GS, as Radio Shack recently had a similar promotion.
Apple still lists the 3GS at $99.00 on its own website. The 3GS would make for a good starter smartphone for many people, but lacks FaceTime, the retina display, HD video recording and HDR for stills.
Even without those