With lines about to form for the new iPhone 4G, America’s largest retailer is the first to try to liquidate its stock of older models, knocking $100 off the cost of a 16GB iPhone 3GS handset as of Tuesday.

At $97 with a two-year AT&T contract, that may be the lowest price around for an iPhone. Apple sells its eight-gigabyte iPhone 3G for $99 online. The catch is you’ll have to go into a Wal-Mart store to take advantage of the $97 deal. Likely hoping shoppers will spend more money once they are lured to the chain’s sprawling shelves, the company isn’t offering the deal online.

The question is, get a 3GS now, or get a 4G in a month or so? Hmmmm.

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