Apple iPhone 8GB 3G S in the works for before Christmas?

There have been rumours Apple is preparing to phase out the 8GB iPhone 3G for an 8GB version of the 3G S for a while, and now unnamed sources from AT&

AT&T is still the exclusive distributor of the iPhone in the US, and the sources from the company have reportedly told BGR that Apple is contemplating releasing the 8GB 3G S at the same $99 price point of the 3G.

The move is apparently to keep competition from the likes of Motorola's new Droid handset at bay.

If true, it will be interesting to see when the release filters its way through to the UK. It's not long to Christmas now though, so if it's planning a pre-Christmas push, Apple had better step to it.

What do you reckon - do you think this should be the next move for Apple? Let us know your thoughts below.

Via: BGR