Thursday, May 07, 2009

AT&T Considers Lowering Pricing On The iPhone Plan

According to analyst Michael Cote there is a "strong possibility" that AT&T lower the cost of the entry-level iPhone plan from to $59 from $69 saving customers as much as $240 over the life of their contract.

Cote believes the new plan pricing will probably accompany the launch of the new iPhone, which is expected to come on June 8, during Apple's World Wide Developers Conference.

Over the past year AT&T and Apple have worked to steadily drop the costs of the iPhone slashing prices twice already. The first generation iPhone, which is nearly two years old, was originally priced at $599 for the 8GB version. A few shorts months after the release Apple made a less than popular move when they drastically cut the price to $399.

When the new iPhone 3G was introduced, AT&T looked for ways to make the phone more appealing to a braoder range of customers by subsidizing the cost of the phones. Subsidizing the cost allowed the company to offer the phone at a much more appealing price of $199 with a two-year contract. Now AT&T is selling refurbished iPhones for as low as $99, but the monthly service charge, which starts at $69 for the iPhone is still a hard pill to swallow.

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