More and more evidence of the new 3G iPhone keeps popping up, and today’s juicy news is that it’ll sell for just $199 when you sign up for a 2 year agreement.

What this means to the 2 million current iPhone subscribers is unknown, but knowing AT&T it probably means they are screwed and will have to pay full price for it. It certainly would be in their nature to do anything they can to prevent people from getting their hands on a newer version of the iPhone.

(update: I initially posted this article about the current iPhone, which was of course incorrect!)

(update 2: Gizmodo predicts that this news is totally false, and that the source is someone who has been wrong on every other facet of the iPhone in the past).

Source: CNN Fortune