Online rumours suggest that Apple is preparing a cheaper 4GB iPhone for launch in 2009 at the competitive $99 price point – around the £65 mark!

The Boy Genius Report cites an unnamed but "once proven source" that claims Apple is prepping the cheaper 4GB iPhone to be sold in Wal-Mart next year for $99 on a two-year contract.

Apple launched a 4GB iPhone in the States way back in the summer of 2007, but soon dropped it in favour of the 8GB version of the Jesus phone.

Right now, this is filed firmly under rumour, but it sounds like a feasible move to us, in these credit crunchy times of ours. For more on this, head over to the good ol' Boy Genius Report.