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Back in November, there was a rumor that surfaced that AT&T and Apple were teaming up to put an 8GB 3GS model out with a $99 price point to compete with the Android handsets that hit the scene. The buzz back then was for the Christmas rush, but this deal and 3GS capacity never surface. Go figure. Well, part of the rumor looks to have come true…

Well, here we are a month later and it looks like the capacity rumor had legs. Gizmodo has some news about this iPhone 3GS with an 8GB capacity:

"Seems to be an iPhone 3G (back and no compass, FW) 3.0.1 on it. However, the packaging is clearly designed for an iPhone 3G [S] 8GB. Ordered was a refurbished 3G iPhone 8GB.

Vote: who have a refurbished iPhone 3G in a new packaging of the packaged iPhone 3G [S] 8GB, because the enhancement is clearly new. Which clearly indicates that the sale of the iPhone 3G [S] 8GB immediately imminent."

AT&T already has an 8GB 3G, so naturally this would likely bump that one out. So, an iPhone 3GS for $99 coming soon? Sure. Sounds quite reasonable. I just wish I hadn’t paid $200 for a used unlocked 8GB 3G now. Well, my wife loves it, so no buyer’s remorse needed really.