American Technology analyst Shaw Wu citing sources indicate that a mail-in rebate or carrier subsidy for iPhone of $50-150 is under serious consideration by the Cupertino-based electronics firm.

"We are hearing rebates of $50-150 that will be offered by AT&T to lower the price points for iPhone (currently $499 for 4 GB and $599 for 8 GB) and to entice customers to sign longer term voice and data contracts," the analyst wrote. "From AT&T's perspective, a rebate is a great marketing tool and small sacrifice to make to entice a customer to sign up for 2-year voice and data cell phone plans that cost about $75-100 per month (before taxes and fees), meaning $1800-2400 in 'guaranteed' bi-annual revenue."

According to informationweek, this is another sign The iPhone May Be In Trouble