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AT&T Considering $10 Drop in iPhone Monthly Plan Rates?
AT&T is considering a $10 price cut for the iPhone's monthly service plan when Apple introduces the newest version of the phone next month.
There is a "strong possibility" that AT&T will drop the entry-level price to $59 from $69, says Cote Collaborative analyst Michael Cote, an industry pricing strategist. The announcement, he said, will probably accompany the launch of the new iPhone on June 8, during Apple's World Wide Developers Conference.
Recent sales success for Research in Motion's BlackBerry models, as well as increased competition from the upcoming Palm Pre and forthcoming touchscreen handsets from Nokia, are placing pressure on Apple to continue to find ways to generate new customers.
Finally, Cote points to an approaching "fashion milepost" for the iPhone, as popular phones and other gadgets tend to lose their appeal in their third year on the market, although Apple would certainly argue that continued innovations on both the software and hardware fronts should allow the iPhone to remain at the head of the pack.