A photo has leaked of a Best Buy ad that offers an iPhone 3GS free with 2-year activation. The ad says the offer will only be available on Monday, August 22nd. As Business Insider notes, this could be part of a storewide sale of phones, or it could be a way to clear inventory and make room for the iPhone 5. [image via TechnoBuffalo]

Best Buy Co., Inc. (NYSE:BBY) will be selling the black 8GB iPhone 3GS for free on December 10th. This sale is one-day only so if you want to get your hands on an obsolete phone on-the-cheap, drop by Best Buy this Friday (tomorrow). This deal is valid for additional lines, new lines, and qualified upgrades. Two year contract is required. [BoyGeniusReport]

[Mahalo]

AT&T Inc. (NYSE:T) will be launching a new insurance service starting on June 6th called MobileProtect. This insurance is specifically made for the Apple iPhone and will have a price tag of $13.99 per month.

Wal-Mart stores has cut the price of the 16GB iPhone 3GS to $97. A 2 year contract will be required. $100 drop? Not bad Wally World. [Mashable]

This past week Apple has made some exciting announcements.  Here is a breakdown of everything they announced.

iPad:
-On the first day, 300,000 were sold.  Thus far over 450,000 iPads have been sold.
-Best Buy sold out so Apple is trying to get them additional stock as soon as possible.
-Over 600,000 downloads occurred on iBooks.
-As of yesterday, over 3.5 million iPad apps have been downloaded.

Apple App Store:
-Over 4 billion apps have been downloaded
-Over 185,000 applications available for download now
-Over 3,500 iPad apps in the App Store

Apple iPhone:
-Apple iPhone won the JD Power award 3 years in a row
-iPhone has 64% mobile browser market share
-50 million iPhones sold to date.  About 85 million iPhones and iPod Touches on the market sold.

Apple iPhone OS 4
-Shipping this summer
-Developer preview available today
-10 billion push notifications sent
-100 New User features such as create playlists, 5x digital zoom, gift apps, geotagging, Bluetooth keyboards, spell checker, and tap to focus on video.
-Multitasking will be available on iPhone OS 4
-Folders for app icons (folder icon will have multi-icon icon)
-Unified inbox (all of your mail in one inbox) with inbox switching abilities
-iBooks arriving on the iPhone OS 4
-Enterprise: better data protection, wireless app distribution, and mobile device management.  There is also support for multiple Exchange accounts and new VPN options
-Game Center being added.  Game Center is a social gaming network for multiplayers.  There are achievements, match making, and leaderboards on Game Center. Apple has 50,700 gaming titles.
-Background audio, VoIP, background location, local notifications, task completion, and fast app switching
-iAd Mobile Advertising: There are a lot of free apps out there, but developers are having a hard time making money from them.  However most of the “advertising sucks” according to Jobs.  When you click on a banner ad on an app, it throws you out of your app and into the advertisers website.  This is why people don’t engage with the ads.  Apple has figured out a way to deliver ad content without ever taking you out of the app.  Apple will give developers 60% of ad revenue and keep 40% as part of iAd.
-The iPhone 3GS and iPod Touch 3rd generation will have access to these features this summer.  But the iPhone 3G and iPod Touch 2nd generation will run many of these features, but not multitasking.
-iPhone OS 4 will be hitting the iPad in the fall.

New Apple iPhone SDK
-Over 1,500 new APIs available in OS 4.  Developers can now access the calendar, photo library, and quicklook.
-A new framework called Accelerate is being launched for hardware accelerated math functions.

Interesting Tidbit:
“We tried to buy a company called AdMob… but Google snatched it away,” stated Jobs during a Q&A session. [Engadget]

Apple Inc. (NASDAQ:AAPL) has started selling contract-free iPhones at the Apple Store now at full price.  The 3G costs $499 and the 3GS costs from $599-$699.  The full-priced iPhones are carrier-locked with AT&T. [Engadget]

The UStream iPhone application has hit the iTunes App Store and I’m shocked that it has live streaming. Before it was impossible to have live streaming on your iPhone unless the phone was jailbroken. Now the UStream Live Broadcaster is live and it doesn’t have to be on just WiFi, 3G is supported.

When the iPhone 3G S was released, one of the features Apple touted was the video recording capabilities. These videos could only be uploaded to UStream up until now. This is the first time I have heard of an approved iPhone application that supports video to be streamed on the web as it is being recorded.

The application has the ability to report where and when you are recording a video. This includes sending out tweets and Facebook messages. Geo-location is supported so that you can report where you are recording from. Qik has had a live-streaming application for a while, but it was not available on the App Store. To download the free UStream app, click here [iTunes link]