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 3G.

Like I said, there isn’t very much evidence to back this up but if this goes down it would reportedly be a move to combat the DROID handsets popping up on Verizon.