According to Fortune, AT&T's going to further subsidize the iPhone down as much as $200, making the final retail price a scant $199 with two-year-contract. The rumor is that the $200 bonus will only be available in AT&T stores, not in Apple stores, so people buying and exporting or using it with T-Mobile will be paying the higher price. Current first-gen iPhone users probably won't get this $200 subsidy when upgrading either, unless perhaps they renew for another 2 years.