AT&T May Reduce Price for iPhone Data Plan by $10

Expectations that AT&T will lower the cost of wireless service for Apple's iPhone are growing. A $20-a-month data plan with limited access is a possibility for the exclusive U.S. iPhone service provider.

AT&T's monthly plan for the iPhone is currently $69 plus taxes and fees and includes a $30 unlimited data plan. A comScore study found that 43 percent of current iPhone users have incomes above $100,000, so AT&T needs a lower price for it and Apple to grab a larger share of the smartphone market.

As we reported earlier this month, Cote Collaborative analyst Michael Cote expects AT&T to cut the monthly iPhone plan by $10, to $59 a month, a savings of $240 off the $1,656 cost of a two-year plan. Other reports have speculated that Apple may offer a lower-priced version of the iPhone, particularly since the cost for the touchscreen component has dropped.

Competition Rising

As the three-year anniversary for the iPhone nears, competition is rising, with the BlackBerry Curve and the Palm Pre getting good notices. In addition, more devices powered by the Google-backed Android mobile operating system are coming, and the platform is expected to grow fast.

Apple has an advantage over other smartphone makers in its App Store, which has started carrying more business-oriented apps for the iPhone, including a USAA Mobile App that arrived last week and lets customers handle banking, insurance and investment accounts securely on the iPhone. As we have reported, the App Store may not make much money for Apple, but it helps drive sales of the iPhone and iPod touch.

While its competitors are copying Apple's App Store model with their own online stores, including App World for the BlackBerry and the Android Market, more than one billion apps have already been downloaded from the App Store.

Apple has offered iPhone deals through...