Apple to announce discounts on iPhones

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The Apple Inc retail outlets have been authorised to offer discounts on iPhones to match those offered by wireless carriers and retailers. People familiar with the matter said that the company has begun telling the retail employees that they may offer discounts of $49 on the iPhone 4S and the iPhone 4 to the customers who cite lower prices from other outlets.

However, the company has not yet told the employees why they the discounts are being offered and the reduced prices have not yet been advertised. The discounts have come as the company is widely believed to be getting ready a new version of its iPhone.