Echoing an earlier rumor, Businessweek is now saying that AT&T is ready to reduce prices on iPhones. They see the long-rumored $99 price point for iPhones and lower tiered wireless plans. The cost will be made up for by the iPhone's cheaper hardware, resulting in a lower subsidy by Apple.
New devices may cost as much as one-third less to produce than earlier versions, Doherty says. The cost of touchscreens, the most expensive component, has declined by more than 30% in the past year, estimates Michael Cote, an analyst at consultant Cote Collaborative Wireless Strategy.
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