Apple Inc is changing the way it makes money on iPhones as it revamps agreements with wireless carriers so they will cut prices for the devices, Chief Operating Officer Tim Cook said on Monday.

Apple on Monday launched a new iPhone with faster Internet access that runs on so-called 3G or third-generation wireless networks, and cut the price of an entry-level model in half to $199, a move certain to increase sales of the high-end phone.

Cook told Reuters that Apple will give up after-sale fees from carriers, essentially a share of the customer's monthly fee, in new deals with the mobile phone service companies.

"The business model of the first phone was that we received revenue-generating payments from carriers. That continues on the first-generation phone," Cook said in a post-launch interview.

Apple Revamps Business Plan for New iPhone [uk.reuters.com]

New Apple iPhone at $199 [webmasterworld.com]