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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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.