Today, PC World says (in A $99 8GB iPhone 3GS to Kill the Motorola Droid?) Apple and AT&T may team up to do battle against the Droid with a $99 version of the 8GB iPhone, according to reports.

And Danny Allen from Gizmodo says (in $99 8GB iPhone 3GS For Christmas?) It's hearsay at this point, but Boy Genius Report's sources claim the 8GB 3G will be swapped with a 3GS. They've had a decent-enough record with rumors lately, and it makes sense against the $99 Droid Eris. We'll see. [BGR]

Yesterday, Jeff from MobileWhack.com says (in AT&T looking to launch 8GB iPhone 3GS for $99?) Before you read on please make note that this is only a rumor and has not been confirmed in any way shape or form — BGR brings us news that AT&T and Apple are pondering whether or not to launch an 8GB iPhone 3GS for $99 that would be presumably replace the current $99 iPhone [...]

And Electronista says (in AT&T to carry 8GB iPhone 3GS by holidays?) Apple and AT&T may use an 8GB iPhone 3GS as a 'secret weapon' against the launch of the Motorola Droid if a rumor proves accurate. Two separate sources of BGR's say the two iPhone partners are considering replacing the existing 8GB iPhone 3G with a 3GS variant, preserving the same capac...

This Week, Mac Rumors says (in Apple Considering Launching 8 GB iPhone 3GS Before Christmas?) Boy Genius Report posts a brief tidbit noting that it has heard from two separate sources that AT&T (and thus Apple) is considering launching a $99 iPhone 3GS in time for Christmas.We've heard now from two sources that AT&T, and we g...