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iPhone Subsidies, Production Ramp Up?

USA Today provides some additional confirmation to the rumors that the next generation iPhone will benefit from carrier subsidies. According to the newspaper, the new iPhone will start at $199:

The price also will rock: $199, according to people with knowledge of the matter, down from the current $399 and $499. Sources declined to be cited by name or affiliation because Apple and AT&T haven't authorized anybody to speak publicly about pricing until after Monday's announcement. The $199 price is being subsidized, though USA TODAY could not confirm details.

Rumors of a $200 rebate first emerged in April alongside claims of GPS and a thinner design. Similar claims were again echoed just last week.

Meanwhile Barrons has heard that the Foxxconn, Apple's iPhone manufacturer, has only shipped "several thousand" of the new iPhone and don't expect to ramp production up until the middle of the month. This would suggest an actual launch date closer to the reported AT&T blockout dates (June 15-July 15th).

Apple is widely expected to announce the 3G iPhone at today's WWDC keynote speech which begins at 10am Pacific. We will be providing live coverage at MacRumorsLive.com.