It looks like Apple is finally giving in and subsidizing the new iPhone for just $200. “Apple has accepted that the new iPhone should be subsidised in the US and western Europe by the mobile operators who sell it to consumers, according to people familiar with the matter.” This would be just with a new contract of course. AT&T is gonna get huge business from this and Apple is gonna kill.

The major changes include a new color, a thinner design and video chatting (iChat), which can be run on Windows.