According to Cote Collaborative analyst Michael Cote there is a "strong possibility" that AT&T will drop the entry-level iPhone tariff price by $10.
The $10 price drop would bring the price of the tariff down from $69 to $59, a saving of $120/year. The move is said to be announced at next months Worldwide Developers Conference where Apple is expected to unveil a new iPhone.
Commenting on the current price of an iPhone over a two-year contract, Cotes said:
"This price does not address the whole market," says Cote. And the price barrier has started to be a concern for Apple. For example, says Cote, "Wal-Mart iPhone sales haven't met expectations."