Report: AT&T to cut iPhone price to $199

According to a report in Fortune, AT&T is planning to reduce the price of Apple's upcoming 3G iPhone to $199 through a $200 subsidy. Apple is expected to announce two version of the 3G iPhone, according to the report: an 8GB iPhone for $399 and a 16GB iPhone for $499. By reducing the pricepoints by $200, AT&T will be putting the popular handset within reach of more subscribers spending limits. Since iPhone users have proven to be heavy data users, it follows that recouping the subsidy wouldn't take too long for AT&T.

Since iPhone users already need to sign-up for a two-year contract with AT&T the rumored move brings up a few questions. The report claims Apple stores will not sell the subsidized iPhones. So why would anyone buy an iPhone from an Apple store? The phone is locked to AT&T, anyway. Is that $200 just to enjoy time at the Apple store? Under this somewhat unlikely scenario, perhaps, Apple will be selling unlocked iPhones at full price.

For more on the report:
- read this article from Fortune

Related:
AT&T: 95% of iPhone owners surf the mobile web 
Apple counts down Top 10 iPhone web apps

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