AT&T to Slash iPhone Service Plans

AT&T and Apple have slashed the price of the iPhone twice already. And now, it could be brought down even more. AT&T may slash the price of its iPhone service plan by $10 when a new version of the touchscreen smartphone is launched this summer. This is according to recent news regarding the popular phone.

This could prove a good move for AT&T as studies show that consumers are more than willing to shell out anywhere between $100 and $200 for a sophisticated smartphone device. But the monthly service charge, which starts at $69 for the iPhone, is much harder to accept as this could ultimately raise the phone’s real cost over the life of the two-year contract at about $1,856.

But with this news, the entry-level price of AT&T’s service plan could be reduced to $59 from $69. Apple is expected to unveil the latest iPhone on June 8 during the company’s World Wide Developers Conference in San Francisco.

For the most part, Apple and AT&T have managed to keep the subsidy and sale price of the iPhone constant over the past year, while other carriers and smartphone makers have been forced to slash prices to attract customers.

But as competition heats up in the smartphone market, AT&T and Apple could be forced to address the affordability issue to gain new customers. This is especially true as Research In Motion’s consumer-focused BlackBerry Curve surpasses the iPhone in sales. And with the Palm Pre also set to launch in early June on Sprint Nextel’s network, Apple and AT&T will face even more competition.