AT&T considering cutting prices for iPhone service plans

Scott Moritz at TheStreet.com reports on a rumor that AT&T is considering a $10 price cut for the iPhone's monthly service plan which would drop the lowest plan from $69 to $59 per month. The move is being viewed as a way to bolster lackluster iPhone sales. Or is it?

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.

Moritz notes that lower priced plan represents a 14% price cut and that it would reduce the cost of a two-year contract by $240. Which is nothing to sneeze at considering that the price of an iPhone after including a two-year AT&T contract is a whopping $1,880.

The rumor could also be an indication that Apple intends to finally announce a lower-cost iPhone nano with the new lower priced plans being marketed to price conscious consumers that have been sitting out the iPhone dance.