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Fortune magazine is reporting what seems like a very big deal:

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.

You’ll only get that deal, though, if you buy your iPhone directly from AT&T, rather than through Apple.

But who cares?

As the article points out, a $200 price cut should bring in a lot of new customers. I wonder how far away we are from a four-gigabyte iPhone that’s free with a two-year contract.

The Fortune article also confidently predicts some features of the new iPhone (which it says will be released at the end of June):

The new iPhone will be 2.5 mm thinner than the 11.7 mm original. The iPhone will also have a GPS chip for navigation and other location-based services.

I’m in! (Once my stupid Sprint contract runs out. Sigh.)

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