3G iPhone Could be as Low as $200

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As speculation has Apple's upgraded 3G iPhone debuting either at the developer's conference on June 9th or on the one year anniversary of the iPhone on June 29th, a report from Fortune has AT&T possibly subsidizing the iPhone by as much as $200. AT&T believes that such a price could draw customers away from competitors such as Verizon, T-Mobile USA and Sprint Nextel.

3G iPhone AT&T

The 2G iPhone currently goes for $400 so a $200 3G iPhone is a very attractive offer. According to Fortune the subsidized phone will only be sold at AT&T stores, not at Apple retailers. While the average wireless customer's monthly bill is around $50, the average iPhone user racks up a $100 bill. AT&T believes it could make up for the phone's lower cost in a matter of months. The 8GB model will go for $199 while the 16 GB model will be $299 after the $200 rebate.

Apple also plans to stop sales of the original iPhone a few weeks prior to the launch of the 3G version to clear its inventory and create demand for the new phone.

Only a few details have been confirmed so far. The new iPhone will be 2.5mm thinner than the original 11.7mm. It will also have a GPS chip for navigation and other location-based services.

[via Fortune]