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Apple, AT&T unveil iPhone service plans

CUPERTINO, California (AP) -- AT&T Inc. and Apple Inc. on Tuesday said wireless service for the iPhone will range from $59.99 per month to $99.99 per month.

The highly anticipated gadget retails for $499 for a model with 4 gigabytes of storage and $599 for one with 8 gigabytes. It's slated to go on sale at 6 p.m. local time Friday at Apple and AT&T retail stores as well as Apple's Web site.

The $59.99 monthly plan includes 450 minutes of voice time; a $79.99 plan includes 900 minutes; and a $99.99 plan includes 1,350 minutes. All three offer 200 text messages, unlimited data services, minutes that roll over month-to-month and mobile-to-mobile calls. There also is a $36 activation fee.

Apple claims the iPhone -- which combines the functions of a cell phone, iPod media player and Web-surfing device -- will be easier to use than other smart phones because of its unique touch-screen display and intuitive software that allows for easy access to voice mail messages, the Internet, and video and music libraries.

But skeptics wonder whether even the most innovative product can live up to the iPhone's lofty expectations. Scrutiny of the product is so great that any small disappointment could send Apple's stock plunging, analysts say.

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