Well, we can't say that this is totally unexpected, but we just didn't expect for this price cut to take effect so soon. According to CNN Money, Walmart is cutting the price of the 16GB iPhone 3G to just $97, which represents a $100 price cut from its usual price.

The move comes just two weeks ahead of the official announcement of the iPhone 4G (although we've all seen pretty much every angle of the upcoming smartphone). The price cut could either be an effort to clear out inventory ahead of the iPhone 4G launch or more likely, it will become the new entry-level iPhone model.

If you recall, when the iPhone 3GS launched around this time last year, it was priced at $199 and $299 respectively for the 16GB and 32GB models. The older 8GB iPhone 3G was reduced in price to $99 to snag more price conscious buyers.

However, the $100 price cut really means little in the grand scheme of things considering that the phone is going to cost you at least $1,680 over the course of a two-year contract in service fees alone.

In other Apple news, the company today kicked off its annual back-to-school promotion. Customers who buy a qualifying MacBook, MacBook Pro, MacBook Air, or iMac computer can get a free 8GB iPod touch after a mail-in rebate.