Dignan's Memo: AT&T bets big on the iPhone

ZDNet Editor in Chief Larry Dignan says charging a mere $199 for the 8GB version and $299 for the 16GB version is a good strategy to drive adoption of the second-generation iPhone. AT&T's big plan is to offer a subsidy on the phone and charge an extra $10 on the data plan. Dignan believes, if the math adds up, AT&T's profit margins will take a small hit now but will rake in the dough later.