American iPhone to be Subsidized?

USA Today has provided some additional confirmation to the rumors that the next generation iPhone will be subsidized.

"The price also will rock: $199, according to people with knowledge of the matter, down from the current $399 and $499. Sources declined to be cited by name or affiliation because Apple and AT&T haven't authorized anybody to speak publicly about pricing until after Monday's announcement. The $199 price is being subsidized, though USA TODAY could not confirm details."