Verizon is touting its Droid phone as an Apple killer. For weeks waves of buzz surrounding the Android 2.0 Droid – the iDon’t commercials, the photo leaks, the Droid Eris, the official list of specs, a massive Droid launch event in New York City, and that cool Droid advertisement with all the stealth bombers have been pouring out. The Boy Genius Report, who had Droid specs before anyone else, and the site has been exceptionally snappy with picking up gossip on all manner of smartphone is saying that Apple will launch a $99 8GB iPhone 3G S sometime in the next month.

A sub-$100 iPhone right in time for Christmas shoppers would clearly be an attempt by Apple at bombing the Droid launch parade (yes yes, I know… it’s $99 WITH a 2 year contract).

Apple needs to do something, I wouldn’t count them out just yet, but the volume of Android phones coming out this next year is astounding. Unless Apple responds with a really beefed up iPhone I would predict Android to start chomping into their market share very quickly.