Is Apple discontinuing the iPhone 3G, 8GB model? According to Boy Genius Report, probably so.

According to the report, Apple has stopped supplying AT&T stores with the $99 entry-level iPhone 3G. Other carriers worldwide are also reporting that the device is “currently unavailable” or have otherwise made the 3G unable for purchase.

With a spiffy new iPhone upgrade expected to be announced next month at WWDC, this move shouldn’t come as a surprise. The iPhone 3G is basically original 2G guts with a new case and an additional 3G radio. The old, slow CPU and 128 MB of RAM won’t be able to take advantage of many of the new iPhone OS 4.0’s features. And with higher resolutions for the iPhone camera (as well as larger music files), the once spacious 8 GB of storage space is now feeling awfully cramped.

If you’re shopping for a new iPhone or considering upgrading your current hardware, this new development is a very compelling reason to wait until we hear what gifts Steve Jobs has for us in his WWDC Keynote address. The $99 iPhone 3G may not seem like such a bargain in a few weeks and there’s a good chance that the 16GB iPhone 3GS — with more RAM and a faster CPU which will take full advantage of the new OS’ features — could become the new entry-level iPhone.



Sources: Boy Genius Report |   TUAW