The latest Apple [AAPL] rumor doing the rounds is that AT&T are going to be selling an 8GB version of the iPhone 3GS just before Christmas.

Currently the only 8GB iPhone available is the 3G, and the iPhone 3GS is available in 16GB and 32GB version, by launching an 8GB iPhone 3GS for $99, AT &T may be able to get customers who would have been interested in the new $99 DROID Eris.

As usual with all Apple rumors, it needs to be taken with a pinch of salt, mind you the BGR usually gets these things right so who knows, we may see a $99 8GB iPhone 3GS on AT&T before Christmas.

via Gizmodo