Rumor: AT&T to subsidize the price of Apple's new iPhone

When the Apple iPhone was first introduced, a lot of people complained about AT&T’s decision not to subsidize the costs of the unit. However, word on the street is that the next iPhone will be subsidized by AT&T.

According to the Fortune Techland Blog’s unnamed sources, the company plans on subsidizing as much as US 200 of the expected US 399 (8 GB version) and US 499 (16 GB) version of the iPhone for those who sign a two year contract.

The US 200 subsidy is expected to be limited to AT&T customers only and will not be offered through Apple stores. In addition, iPhones will be locked to AT&T’s service, preventing users from using the phone on another network.

So far Apple and AT&T have declined to comment on this move. However, it might be good to note that this move by AT&T seems like a prudent and plausible move considering the amount of success the first model of the iPhone has gotten.

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