Not so long ago, we told you folks about an unconfirmed report of Apple stopping the iPhone 3G shipments to AT&T. Well, it seems that the rumor was pointing to the truth as AT&T has officially announced that it has run of the iPhone 3G stock.

The American carrier has directed their representatives to present iPhone 3GS as the alternative for their customers. Unfortunately, there was no official declaration of the price drop for the iPhone 3GS but don’t be surprise if you see the price drop to $99 in the next few days.

Yes, this price drop is due to the upcoming iPhone 4G, which looks all but certain to be unleashed on 7th June. The iPhone HD has been out earlier than Apple would have liked as it was leaked first in America and then in Vietnam. iPhone 4G is expected to bring with it a front facing camera, HD quality video recording, increased resolution and much more.

[via BGR]