Rumors of a reduction in fees for iPhone usage from AT&T continue to proliferate, as the top-tier wireless provider continues to struggle to hold onto its monopoly on iPhone service in the U.S.

New reports of cuts in iPhone service plan prices have surfaced recently in Business Week, according to a macnn article, and are backed up by reports from several mobile industry analysts. The newest reports say that the cuts are possible as early as this month (May 2009) and could take several forms depending on decisions made by the wireless carrier.

As reported earlier from a number of sources, AT&T is considering lowering the unlimited data plan price, which is mandatory for all iPhone subscribers, by $10 per month, bringing it into line with or lower than similar plans provided by other U.S. carriers. Now it is being reported that AT&T could also consider simply adding cheaper data plans to its current fixed offering of unlimited only, charging lower fees for fixed, limited data. Reportedly, one of these lower rate plans would also be $10 cheaper than the current rates. There is a theme developing here around the figure $10.

These forecasts were kicked off by industry analyst Michael Cote. His original prediction was for a simple reduction of the price if the unlimited data plan which has been so popular among iPhone users. Apple has pushed AT&T to provide lower prices in order to attract more users to the iPhone and thus to extend iPhone usage in the smart phone marketplace.

Mobile industry expert Chetan Sharma argues that even a small price cut like $10 could bring AT&T 20 to 25 percent more iPhone subscribers to AT&T. Many studies, including an authoritative one by comScore, have show that the iPhone currently appeals primarily to persons having salaries of at least $100,000 per year. Bringing down the price of the data subscription could lure less well-to-do users into the fold.

Lower costs for the touch screen component of the iPhone has been driving manufacturing costs down, which may allow Apple to lower the price of the iPhone itself. This possibility has its own set of rumors, and could also help to get the iPhone into the hands of more users without affecting the bottom line. Price goes a long way in an economy like this one, especially when paired with quality and performance.

Related:

Entry was posted on Monday, May 18th, 2009 at 2:48 pm under Rumor, iPhone.  Print This Post

Read more entries by Michael W. Jones.
Stumble It!