Appletell

According to a report by Fortune today, AT&T Inc. will subsidize $200 of the purchase price for new iPhones purchased this summer, reducing its cost to as low as $199. Although Apple wouldn’t be particularly happy, they wouldn’t be able to object either, due to increasing iPhone sales through AT&T.

Fortune claimed in its report that AT&T will subsidize the price of new iPhones capable of accessing the 3G data network that the carrier is currently expanding in the United States. AT&T’s $200 price cut would likely be limited to customers who sign a two-year contract, and would not be available directly through Apple. Apple and AT&T now sell the iPhone for $399 for the 8 GB model and $499 for the 16 GB model, and the expected 3G models are estimated to have the same list prices. Several weeks before the new 3G iPhone is to be released, Apple will stop supplying the current iPhone models to reduce inventory, according to Fortune.

Both Apple and AT&T declined to comment on the report, with representatives from both companies stating that they do not comment on speculation.

Read [Fortune’s Report]

AppleInsider is reporting that Apple and O2 are planning to slash the price of their 8GB iPhone handset in the UK. I have already complained about the ridiculously overpried iPhone in the UK - it’s about time someone cut the price to something much more reasonable. Unfortunately, the overseas trade publication said that the 16GB model would not see a similar reduction, remaining at £329. One price drop is better than none I suppose. I think Apple are trying to open up the iPhone to wider audiences by reducing the price of their lower model. The higher model is for those with a lot more to spend on a phone, and, therefore will remain at a high price. I imagine in less than a year’s time 16GB will become the standard model, and a new 32GB iPhone will come in place of the £329 price.

Apple recently introduced a similar price cut in Germany that saw the local version of the 8GB iPhone fall from €399 to €299. There is still speculation that these price cuts are due to a 3G iPhone coming in the future - but it is typical that prices are reduced over time.

Via [AppleInsider]