Rumors are circulating that Apple plan on lowering the price of iPhone and iPod Touch models by $100 at some point in the near future - it varies between “by the end of February” and “by mid-April” - while simultaneously hitting delete on the 8GB versions of both devices. The move would put a 16GB iPhone at $399 while a 16GB and 32GB iPod Touch would be $299 and $399 respectively.
Forbes is suggesting that prospective iPhone buyers hold off until the much-speculated 3G iPhone, about which the consensus appears to be that it will launch in then next three months. That might seem like a long time if you have cash burning a hole in your pocket, but it’s nothing compared to the tedium of getting locked into a two-year contract with a far slower device.

Source: Phone Mag