$200 iPhone


Fortune reports that AT&T may be planning subsidize the iPhone to the tune of $200, reducing the cost of the entry-level 8GB to $199 with a two-year contract.

The lower retail price would likely attract more buyers and help AT&T scalp even more customers from competitors--something the iPhone has effectively done with up to 40% of buyers reportedly coming from other carriers.

Whether the $200 price reduction comes as a direct subsidy or in rebate form, Forbes speculates that only those purchasing directly from AT&T would be eligible.

Apple Store


Forbes also claims that the 3G iPhone will be 2.5mm thinner than the current model and include a GPS.

Yesterday, IGM reported that the 3G iPhone will include a smaller LCD, come enclosed in plastic and weigh about one-third less than current models.

Editor's note: A big price reduction to be sure, but still not within reach for many buyers, especially considering the high plan costs. Is a $200 iPhone cheap enough for you to consider buying one?

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