AT&T is planning to put some extra shine on the even sleeker new Apple
*iPhone.

When the 3G iPhone is introduced this summer, AT&T, the exclusive U.S.
iPhone sales partner with Apple,*will cut the price by as much as $200,
according to a person familiar with the strategy.

AT&T is preparing to subsidize $200 of the cost of a new iPhone,
bringing the price down to $199 for customers who sign two-year
contracts, the source says. Apple is expected to have two versions of
the new iPhone, an 8-gigabyte-memory and a 16-gigabyte-memory model with
price tags*widely expected to be $399 and $499.

AT&T*and Apple declined to comment.