AT&T Plans to offer iphone with $200 rebate, bringing the price down to $199. The new 3G AT&T iphones are schedule to be available the end of June. In order to get the iphone with AT&T, you do have to subscribe to a 2 year contract. 

I am in the market for either an iPhone or Blackberry, I think I may wait until June for the iPhone.

“..When the 3G iPhone is introduced this summer, AT&T, the exclusive U.S. iPhone sales partner with Apple, will cut the price by as much as $200, according to a person familiar with the strategy.

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.” Read more from Fortune.com