The Palm Pre has been reduced in price to only $99 at Best Buy with a 2 year contract. The reason for the change is unclear, but the low price of the iPhone 3G may have something to do with it. On the subject of the 3G, AT&T has also reduced the price of refurbished iPhone 3G models to $49 (8GB) and $99 (16GB). Boy Genius makes a good point about this price cut- “So people, the bottom line is if you have $1,680+ to spend on your cell phone service over the next two years (or $960+ on a family plan) but that extra $30 on the handset price was scaring you away…” And he managed to do it without swearing- that’s one Twitter feed I won’t be going back to…

UPDATE: It appears the price drop on the Pre was an error. doh!