During a recent AT&T investor meeting, the company focused a lot on the upcoming iPhone launch. While not giving away any specific details, the company talked about its intentions.

Not surprisingly, AT&T intends to use the iPhone launch as an important branding opportunity, increasing the amount it spends on advertising to cement the 'AT&T Mobility' name in the market. The wireless carrier expects Apple to also market the device aggressively through its own avenues.
The consumer's enthusiasm for the handheld device is undoubtedly too good to pass up and both companies will try to make the most of it. So much so, that analysts who previously expected AT&T to subsidize the cost of the iPhone have concluded that the company might do no such thing after all.

Rumors of such a subsidy appeared and found fertile roots in the many who would love an iPhone but find the price of the device a bit too much. However, while such a move would undoubtedly be popular, it might not be necessary. Demand for the iPhone seems to be incredibly high and as such the company has no reason to subsidize it, when they can simply sell them and even generate a small margin from sales in its own stores.
For those who find the iPhone too expensive, the price will eventually go down as newer models are introduced and the technology become cheaper.

If surveys are anything to go by, the demand for the iPhones might be so high that Apple might have issues with demand. In this light, it makes little sense for AT&T to subsidize the cost of the gadget. If anything, customers would probably even pay more than the stated price if they could get their hands on the device today.