USA Today reports today in a lengthy piece about the new iPhone. They expect according to their sources that the iPhone 2.0 would be selling for only $199.

The $199 price of the iPhone would be of course subsidised by AT&T and sure require a new contract.
USA Today states as launch date of the new iPhone Summer. Our expection based on various shipment rumors is that it will even go on sale today or end of this week already.
USA Today highlights the new possibilities users will have with Applications for the iPhone based on the new iPhone SDK.
Read the full story on USA Today.
More 3G iPhone Rumors.