AT&T To Offer Discounts For New iPhone 3G

San Antonio, Texas (AHN) - AT&T, the exclusive carrier for Apple's iPhone in the U.S., said Tuesday it will sell the 8GB 3G version of the touch-screen handset for $199 to certain customers. The 16GB version of the device will cost $299 for some buyers.

To be eligible, customers need to have either purchased an iPhone prior to July 11, when the handset goes on sale, or are adding a new AT&T line. Consumers will also need to purchase a two-year service contract.

If buyers aren't eligible for the initial pricing, AT&T said it will charge $399 for the 8GB iPhone 3G or $499 for the 16GB model. For those opting to forego a contract, the price will be $599 and $699 for the 8GB and 16GB versions.

The iPhone 3G, which includes support for faster wireless networks, global positioning services and business-friendly features, goes on sale 8a.m., July 11.