Current iPhone customers criticized AT&T when it announced that only new customers could purchase the new iPhone for $200. AT&T says that price is subsidized by the phone's manufacturer.
Current iPhone customers were going to be charged $400 or more for a new phone unless their service contract was at a point where they qualified for an upgrade.
AT&T now says customers whose contracts would qualify for an upgrade in July, August or September will now be able to purchase the new iPhone at the lower price.