Rumors about the iPhone hitting Walmart at a discount price have been circulating for some time, and The Boy Genius Report is bolstering those rumors today, saying it received a tip that the giant retailer will be reviving the 4GB iPhone model for just $99 with the standard two-year contract. The handset would be functionally identical to existing 8GB and 16GB versions and presumably offered with the same monthly price plans available now.

True or not, the idea of selling affordable 4GB iPhone 3G makes sense and should have mass appeal, considering not everyone needs to carry their entire music and video library with them at all times. The site cautions that this should be taken strictly as a rumor for now due to an unproven source, but indeed some Walmart training materials have been seen in the wild. Moreover, it's not unusual for the giant retailer to secure a special version of a product to sell at an extremely attractive price – though conversely Apple is not known for giving its retail partners any special treatments.