AT&T planning to trim iPhone data costs?

AT&T is reportedly poised to trim the iPhone's monthly service plan by $10 when Apple introduces the newest version of the smartphone next month. According to Cote Collaborative analyst Michael Cote, there is a "strong possibility" AT&T will cut the iPhone's entry-level data service plan from $69 per month to $59, reducing the total cost of a two-year contract by $240. Right now, AT&T subscribers spend $1,856 over the life of their two-year agreement. "This price does not address the whole market," Cote tells TheStreet.com, contending that the pricing barrier is becoming a concern for Apple--for example, "Wal-Mart iPhone sales haven't met expectations."

AT&T will likely announce the pricing cut in conjunction with the anticipated launch of the newest iPhone, which Apple is expected to introduce during its annual World Wide Developers Conference on June 8. Cote does not believe Apple will introduce a cheaper, so-called "nano" edition of the iPhone: "Apple would first need to address the entry-level price point before introduction of a $99 iPhone," he said.

AT&T and Apple have cut the price of the iPhone twice before. The first version of the smartphone, introduced in mid-2007, was originally priced at $599 for the 8GB version--a few months later, Apple reduced the cost to $399. When the iPhone 3G debuted last summer, AT&T subsidies reduced the price to $199 with a two-year contract. The price cut is credited as a major factor behind 2008 iPhone sales totaling about 17 million, compared to roughly 4 million devices in 2007.

For more on the AT&T price cut rumors:
- read this TheStreet.com article

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