3G iPhone discounts?

The 3G iPhone will be available for less than €100 with Spanish carrier Movistar, writes Thomson Financial. The group cites reports in the Spanish press, which say that in exchange for such a low fee, buyers will have to agree to contracts as long as two or three years. The Thomson story also suggests that the new phone will definitely have GPS and video recording capabilities, though only the former has been indicated by evidence such as iPhone 2.0 firmware references.

It has meanwhile been suggested, according to anonymous sources, that not only will O2 sell the 3G iPhone in the UK for just £100 with an 18-month contract, but that the carrier may offer added incentives. Customers could, for example, opt for a pay-as-you-go option plan, in exchange for a cost of £269 for the actual phone. A reverse option could involve receiving the iPhone for free, but mainly to new customers signing up for O2's most expensive £75-per-month subscription. Owners of 2.5G iPhones could also be given the chance of a free device, but they could be expected to add another 18 months to their contract.

by MacNN Staff