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Apple drops iPhone prices: 8GB 3GS free, iPhone 4 now $99

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No big surprises here, but the iPhone 4S' older siblings are getting drastic price reductions. An 8GB 3GS is now free on contract, while the iPhone 4 is now only $99 with a carrier agreement -- that one bill gets you an 8GB iPhone 4. We've received no indication of cuts for other flavors of the old guard, but we suppose congratulations are in order for bargain hunters with limited iTunes libraries.

Update: According to the Apple Store, the iPhone 4 is also "coming soon" to Sprint.

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