AT&T to follow Europe by slashing new iPhone price to £99

US Telecom company and iPhone launch partner AT&T is mulling plans to cut the price of the soon to be announced 3G iPhone by as much as $200 according to sources close to the company.

The new strategy could go hand in hand with a rise in the data plan; currently, the unlimited data plan for the iPhone in the US is $20 a month while AT&T charges Blackberry owners $45 for the same privileges.

This has not prevented many iPhone users to spend in excess of $100 per month since the phone was launched in June.

The low price iPhone would also mean that AT&T customers will be tied in for two years and guarantee an equally long period of sustained revenues from Apple; the company is currently getting anything between 10 percent and 25 percent of the monthly fee paid by iPhone users.

Apple could also be looking into selling the iPhone as unlocked mobile phones at a higher price; something that would bring the manufacturer in line with other mobile phone manufacturers.

A source close to Apple said that the new iPhone will be thinner than the original at 9.2mm and will offer onboard GPS and geo-localisation features.