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Cheaper iPhones on the way?

Thinking about picking up a new iPhone this weekend? You
might want to hold off…Sale

The Financial Times reports Apple will roll out a cheaper
iPhone at its worldwide developer conference on Monday. The respected paper
quotes analysts who feel the company will unveil a low-end phone for either
$149 or $99. That’s a subsidized price, of course. You’ll still have to sign a
contract with AT&T.

The Times predicts the new iPhones will likely begin
production in July when the third generation of the phone’s operating system is
released. One analyst predicts a $99 iPhone could double demand.

A price cut would make sense for Apple, given Sunday’s
release of the Palm Pre. Initial reviews of the competing smart phone have been
enthusiastic. While the phone won’t cut into Apple’s lead of the smart phone
market anytime soon, an iPhone price cut could take away some of the Pre’s
momentum.

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