America braces itself for the $99 iPhone

Just as Facebook lost its veneer of cool when your granny first sent you a friend request, the US is about to see hordes of teens GPS'ing their way ar

Just as Facebook lost its veneer of cool when your granny first sent you a friend request, the US is about to see hordes of teens GPS'ing their way around malls and emailing (but not picture messaging) their mates with a discount iPhone.

Insider reports suggest that Walmart - the parent company of Asda in the UK - will start selling a $99 (£66) iPhone on December 28.

Fanboys have already noticed that the retail giant has a beta version of a Walmart online store for the iPhone (pictured above).

The new iPhone is rumoured to be a fully featured 3G handset, albeit one packing just 4GB of on-board memory, instead of the current 8GB and 16GB models.

The US iPhone is in desperate need of a price cut. The cheapest model here sells for $199 plus tax - making it around 40% more expensive than same model sold by the Carphone Warehouse in Britain.

Calling plans with AT&T are pricey too, starting at $70 (£45) per month, although it's not clear yet whether Walmart will be offering discounts here, too.