Rumor: 3G iPhone to sell for US$199

In Fortune's TechLand blog Scott Moritz cites a "person familiar with the strategy" as saying that Apple will drop the price of the new 3G iPhone as much as US$200 when it's launched this June. The only catch: buyers will be required to sign a new two-year contract.

Rumor: 3G iPhone to sell for US$199
In Fortune's TechLand blog Scott Moritz cites a "person familiar with the strategy" as saying that Apple will drop the price of the new 3G iPhone as much as US$200 when it's launched this June. The only catch: buyers will be required to sign a new two-year contract.

AT&T is preparing to subsidize $200 of the cost of a new iPhone, bringing the price down to $199 for customers who sign two-year contracts, the source says. Apple is expected to have two versions of the new iPhone, an 8-gigabyte-memory and a 16-gigabyte-memory model with price tags widely expected to be $399 and $499.

Moritz confirmed some other 3G iPhone rumors with his source:

The new iPhone will be 2.5 mm thinner than the 11.7 mm original. The iPhone will also have a GPS chip for navigation and other location-based services.

If the price drop rumor is true it'll make Apple's goal of selling 10 million iPhones in calendar 2008 that much more attainable.

(image courtesy: Cleveland Leader)

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