Each year before a new iPhone is introduced to the masses, the older models become a bit more scarce, and all signs are pointing to a price and inventory shakeup within the iPhone world. As you can see in the image above, the iPhone 3G model is not able to be selected for purchase from the Apple Store online. The change happened sometime in the last day. In addition, AT&T stores are no longer able to order more iPhone 3G stock. At this point, it looks like the current entry-level iPhone model is going to be phased away. It’s interesting, because we would have been willing to put money (not a lot, mind you) on the notion that Apple might keep the 3G going, and drop it down to being free with two-year contract.
Update: Looks like Wal-Mart has dropped the iPhone 3GS to $97, so apparently the 3GS will take the place of the 3G as the entry-level iPhone device!