When the 3G iPhone is introduced this summer, AT&T will cut the price by as much as $200, according to a person familiar with the strategy.
This would bring the iPhone price down to $199 for customers who sign two-year contracts, the source says. Apple is expected to sell two versions of the new iPhone a 8GB ($399) and a 16GB ($499).
AT&T and Apple declined to comment.
According to Fortune at $200, the iPhone would be within reach of a much wider consumer market and give AT&T a strong magnet to pull lucrative customers away from rivals like Verizon, Sprint, and T-Mobile. The $200 rebate would not be available through Apple’s stores.