In an effort to stimulate sales of the iPhone 3G, AT&T is planning on cutting entry level data plans $10 to the $59 per month where the fee started two years ago, according to a story on The Street. When the 3G version of Apple's touchscreen was introduced last year, Ma Bell expected further strains on its network so it raised the data plan fee by $10. The expectation is that the lower cost will be announced along with a new iPhone model on June 8th at the computer firm's WWDC. The thought is that chopping $240 off the price of a two year contract would help spark sales of the device which has seen the BlackBerry Curve overtake it in the first quarter to become the top selling smartphone in the U.S. according to NPD
. The $10 per month price drop takes 14% off the cost of $1880 for the handset and service over the 24 months that the contract runs.
Apple and AT&T have managed to beat out competition from "iPhone Killers" of the past such as the LG Voyager, the Samsung Instinct, the G1 and the BlackBerry Storm. With the device set to face off against its toughest competitor yet in the Palm Pre, it seems the decision has been made to use pricing as a tool to knock off the latest challenger to the iPhone.
source: The Street