Thats right. CHAINSAWS. I thought Cuts would be a little too light of a word to use in this case. The price of the iPhone has been dramatically reduced to €99, down from €399. This sudden price cut which sparked rumours of more confirmation that the 3G iPhone was definately coming, was infact in order to “boost sales”. This price cut has only affected the 8GB model, the 16GB model remains the same price.

As usual, customers will be strapped down and forced to sign a T-Mobile contract. Unless they are able to “hack” their iPhones like the other 1.5 million users of the popular device.

Personally we dont think that T-Mobiles plan will massively increase iPhone sales, keeping in mind that the total fee is still €960 over the 18 month contract. Although if this does lead to an increase in sales there is a chance that iPhone prices may drop closer to home, a spokeswoman from O2 (the UK Carrier for the iPhone), said that although the company has no similar plans they will monitor developments and react to customer demand. In simple terms, lots of sales with low iPhone prices in Germany means it’ll probably drop over in the UK aswell.