iPhone gets cheaper before being upgraded with video chat features

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The world's largest retailer Wal-Mart has cut the price of Apple 16GB 3GS iPhone by $100 ahead of Apple's Worldwide Developers Conference (WWDC).

Wal-Mart's website was updated with the new pricing on May 24 and now shows the 16GB device selling for $97 with a new two-year contract.

Apple is expected to announce the launch of its fourth generation iPhone at the WWDC, causing speculation that Wal-Mart is either trying to sell of any extra stock ahead of the launch or that the 16GB iPhone is set to become the entry-level phone in the future and that Apple will stop making the 8GB iPhone altogether.

After a very public outing of Apple's next generation prototype device just months before Apple's largest annual event (WWCD) technology bloggers are all but certain that Apple will reveal a new phone at the conference.

Technology blog Engadget have said the next generation device will be updated with a front facing camera and support for video chat. According to a May 24 article on Engadget, new ads for the device are currently being put together by film director Sam Mendes and feature "at least one spot where a mother and daughter are having a video chat conversation using the new front-facing camera that's been spied on the face of that iPhone floating around Vietnam and Northern California."

All will be revealed during Apple's WWDC which kicks off on June 7 at Moscone West in San Francisco, CA, USA.

http://developer.apple.com/wwdc/