The rumored $200 discount AT&T might give to buyers of an expected 3G iPhone in exchange for a two-year contract could double sales of the device, according to analyst Toni Sacconaghi. It happened when Motorola cut prices on the Razr years ago, and given the added monthly fees iPhone users pay for data service, a subsidy could be recouped quickly."Motorola's experience with the Razr in 2005 suggests that price elasticity in the mobile handset market is very high," he wrote. "We have long held that the iPhone's high price has been the biggest limiting factor on its sales." He noted that when Motorola reduced the price of the Razr from $500 to $150, sales doubled. When the price dropped to $100, the sales doubled again.