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AT&T Rumored to Be Planning iPhone Discount

According to one source, AT&T will offer a $200 discount on new 3G iPhones sold through the AT&T channel.That price cut would lower the price of an iPhone to $199 for customers willing to sign a 2-year contract with AT&T. The discounted phones would only be available through AT&T; Apple is expected to offer two models, one with 8 GB of memory for $399 and one with 16 GB for $499. Presumably, the AT&T phone would be locked to the AT&T service.

The new iPhone will allegedly be thinner than the current model and have true GPS location finding as well as 3G connectivity. AT&T and Apple have declined comment.Fortune