The iPhone has long been seen as a cool but pricey item. This may change, according to Fortune, which is reporting that Apple may allow assorted wireless networks to discount the price of the handset to bring up market share.

In the case of the U.S. 3G iPhone, the device may be discounted by US$199 when the unit is released later this year (most likely June).

The report cites a "person familiar with the strategy" who claims that AT&T will offer a US$200 subsidy on the handset to customers signing up for new two year contracts.

This report comes weeks after T-Mobile in Germany and O2/Carphone Warehouse in the UK applied their own discount subsidy on sales of the 8 GB iPhone, generating sufficient interest with their £100 discount to clear stock on hand within days.

The announcement also comes on the heels of rumors claiming that Apple will begin to shift away from its existing strategy of entering new markets with an exclusive deal via a nominated wireless carrier. Instead, the iPhone will be put on sale through multiple carriers in each country.

The Fortune report also claimed the next-gen iPhone will be available in eight and 16 gigabyte configurations at the same prices as before, and will be 2.5 mm thinner with a GPS chip.

Other rumors state that the 3G iPhone is expected to be released on the one-year anniversary of the original iPhone's debut June 27 or thereabouts. Apple is planning to stop supplies of the older model iPhone, according to the source.

Stay tuned for more details as they become available and let us know what you think over in the comments or forums.