Rumor: AT&T May be Looking into $20/Month Limited Data Plan for iPhone

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Date: Monday, May 18th, 2009, 12:11
Category: Rumor

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With next-generation iPhone and iPhone OS 3.0 around the corner, the rumor mill is jumping. Per BusinessWeek, sources within AT&T have stated that the company “is considering cutting the price of its monthly service package or offering a range of lower-priced plans.”
Among the new offerings would be a US$20 monthly limited access iPhone data plan that could appear before the end of May. AT&T currently offers a one-size-fits-all US$30 unlimited data plan as a mandatory add-on for iPhone subscribers, which helps push monthly services fees for those customers above US$70 with taxes and fees.
Though the report is speculative, it does suggest that Apple could introduce a pre-paid or $99 iPhone to accompany reduced plans from AT&T in a bid to attract lower income consumers. The article also cites a survey indicating that 43% of existing iPhone owners make salaries in excess of US$100,000, noting that this pool of wealthy consumers is quickly running dry.
“A cheaper plan, coupled with new and possibly cheaper iPhones, could give AT&T a larger share of the U.S. smartphone market,” the report says. “And unless prices drop on other smartphones in AT&T’s stable, those rival handset makers, such as Research In Motion could end up losing market share in AT&T’s stores.”
Apple’s attempts to reach lower income markets to expand its iPhone market share aren’t unheard of, as the company currently introduced the handset to various Wal-Mart locations earlier this year.
In its report Monday, BusinessWeek also noted that Apple may have greater freedom to mark down the price of its next-gen iPhones with the cost of touchscreens, the most expensive component, having declined by more than 30% in the past year.

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