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Fortune: AT&T to Subsidize 3G iPhone

by , 9:10 AM EDT, April 30th, 2008

The current batch of rumors put the release of the second generation version of Apple's iPhone in the summer, and now it looks like AT&T plans to subsidize the price of the combination iPod and smart phone when it hits store shelves. AT&T may drop the price of the iPhone by as much as US$200, potentially bringing the cost down to $199, according to Fortune.

Analysts are expecting Apple to introduce a new iPhone model this summer that supports 3G wireless data networks. The current iPhone model supports the slower EDGE technology.

The new iPhone is also expected to be available in 8GB and 16GB versions, just like the current model, and will be priced at $399 and $499 respectively.

This won't mark the first time a cell carrier reduced the price of Apple's iPhone. O2 and Car Warehouse in the U.K. reduced the price of the 8GB model by £100, and then promptly sold out. T-Mobile also dropped the 8GB model's price in Germany to €99 for a limited time.

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