Rumours abound on the web this week, that Californian gadget vendor Apple is negotiating to bring the iPhone 3G to the shelves of US retailer Walmart.

The deal seems likely, with reports coming in of Walmart staff being trained up to sell the devices. Although it looks like the retailer won’t be distributing the gadget until early next year, giving Apple a chance to capitalise on the Christmas sales.

The speculation is also teamed with more rumour mongering of either another iPhone price cut, or the introduction of a new device altogether.

Some believe a sub $100 4GB iPhone is on the way, or rather, set to return. When Apple launched the first generation device in 2007 a 4GB model was available, but was discontinued after only a few months. So it could be the 4GB model is part of the Walmart plan to make the device a mass market proposition. Or it could remain an unsubstantiated rumour that goes against Apple’s product strategy.