AT&T to subsidize 3G iPhone?

AT&T plans to subsidize as much as $200 of the price of the 3G iPhone, according to a Fortune report. Citing a person “familiar with the strategy,” the report states that the subsidy would bring the price of the base-model 3G iPhone to $199 for customers who sign two-year contracts, a price that would help AT&T lure more customers away from rival carriers Verizon, T-Mobile, and Sprint. Subsidized iPhones will reportedly be available only through AT&T and not at Apple Stores, and may feature more robust locking techniques in hopes of preventing customers from using the cheaper phones with other services or carriers. The report goes on to say that Apple will cease shipments of the current-generation iPhone roughly two weeks before the 3G iPhone’s likely June 27 debut, and that the new model will be 2.5mm thinner than the original, and will sport true GPS capabilities, as well.

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