With the new lower price of the iPhone 3G now at $99 it should come within the budget range of many and thus increase the iPhone customer base as the iPhone 3G has now virtually moved into the area owned by low-end smartphones states an article on businessweek.

This move will no doubt give cause for concern with Apple’s rivals such as the Palm Pre, BlackBerry smartphones, Nokia, and so on.

But rivals probably are thinking with AT&T pricing the iPhone 3G S so high to upgrade, the new iPhone won’t be a problem. But AT&T is now considering reducing its iPhone plan rates and replacing with new affordable business and family calling plans along with cheaper data plans, and if that happens then there is nothing to stop the iPhone 3G S tsunami from drowning out rival competition.