With only one day remaining before Verizon announces the big iPhone news, various retailers have dropped the price of an iPhone 3GS from $99 to $49.

The 8GB iPhone 3GS has a weaker camera than the iPhone 4, along with a shorter lasting battery and only about half the pixels, but Apple possibly hopes that by making it ¼ of the price of the iPhone 4 they can still get a few more sales out of it.

Regarding the expected announcement that Verizon will be carrying the iPhone, AT&T is now making claims of superiority over its new competitor by saying that it “has a faster network” than the popular Verizon.

“The consensus is that AT&T is reasonably well-prepared for Verizon’s iPhone onslaught … for now,” stated Craig Moffett, analyst for Sanford Bernstein.

Verizon is scheduled to make the announcement at a press conference at 11am EST on Tuesday morning. Nobody expects any surprises.

Many speculate that Verizon may be carrying the older iPhone 3GS as well as the iPhone 4, but that it seems highly unlikely.

As far as the unexpected price drop is concerned, public opinion is that it is to squeeze a few last sales out of the AT&T network before things totally shift in favor of Verizon.