When the 3G iPhone is introduced this summer, AT&Twill cut the price by as much as $200, says Fortune magazine writer Scott Moritz. That would bring the phone's cost down to $199 for customers who sign two-year contracts.
Apple is expected to have two versions of the new iPhone, an 8-gigabyte-memory and a 16-gigabyte-memory model with "list" price tags widely expected to be $399 and $499.
Such a move would create significant churn potential for rivals Verizon Wireless, Sprint and T-Mobile.
The $200 rebate or subsidy would be limited to AT&T customers and not available through Apple’s stores.
The average iPhone user however, runs up a $100 tab each month due to the higher priced data and calling plan. That would give AT&T an quick payback on its $200 outlay.
Such a move also would snare more of the ultimate iPhone market as AT&T moves closer to the eventual end of its exclusive deal with Apple. And since the iPhone has proven to be such a boost for mobile broadband, AT&T logically would believe much-wider iPhone adoption will help it get where it wants to go, in terms of mobile broadband revenues.
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