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Apple may be planning a pre-Christmas iPhone 3GS price cut, to just 99 dollars in the US, in a bid to stay ahead of the Motorola Droid Android handset which has captured the imagination at an important time in smartphone land.

 According to reports, AT&T, which holds the exclusive rights to sell the iPhone in the States, is weighing up the option, in order to stave off an unexpected bout of Motorola fever.

The iPhone 3G 8GB is currently available for the same price stateside, but any new move would likely see the 3G model discontinued, or perhaps dropped even further in price.

 The Motorola Droid, available on the rival Verizon network has garnered great reviews and feedback in the United States, with the UK still eagerly awaiting the announcement of a UK release. T-Mobile and O2 have already confirmed they won't be selling the Droid (likely to be called the Milestone on UK shores), leaving Orange as the likely destination.

 The Droid is the first handset to run on Android 2.0 Eclair software and is a compact slider boasting a 5-megapixel camera, flash and 4x digital zoom. It follows the success of the DEXT handset that has allowed Motorola to regain a foothold in the mobile market.

 Despite the most intense smartphone competition ever known, Apple is unlikely to follow suit in the UK. Rival iPhone-carrying networks O2 and Orange seemingly unwilling to even compete with each other, let alone the rest of the market.


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