Days after AT&T decides to sling used iPhones, retailer Best Buy announces a limited time price reduction on new iPhone 3G’s.

The sale started yesterday and will run until January 3rd. You’ll save yourself a Hamilton (10 whole bucks) by shopping at the home of the Geek Squad, but in order to be eligible you’ll still need to qualify for an upgrade, or sign a two year contract to get the savings.

Most of us scoffed at Wal-Mart’s two dollar teaser, I don’t think too many people are interested in a used touch screen, so how far will Apple go to move their star product?

Some rumors are leading me to believe that a cheaper iPhone model from Apple is on the horizon.

[via TFTS]