Rumour: 3G iPhone coming to UK in July for £100, as operator subsidies may be allowed

An exciting rumour for budget-conscious Brits is that the next-generation iPhone could go on sale as early as July for as little as £100.

Though this is based purely on "sources close to Apple", it's not the first time there has been a rumour of operator subsidies, and Apple is already believed to have encouraged operators to cut the initial price of the iPhone to boost sales, so it's a definite possibility.

If Apple allows operators to set their own price for the iPhone, and O2 / Carphone Warehouse bite, it could lead to a huge number of iPhones being sold, at a time when the current iPhone is losing market share.

It would encourage many people to buy the iPhone who previously would not have considered it due to the prohibitively high cost of the handset.

Unless extra restrictions are put in place to make it more difficult to keep the iPhone off the O2 network, and subscription free, it could potentially hurt sales of the iPod touch, as some consumers may consider it as an alternative without even using the phone functionality.

It's worth bearing in mind that, with O2 retaining iPhone exclusivity, there's no competition to help drive down prices, unless the Carphone Warehouse is free to set its own price for the handset.

A price cut could seriously annoy existing iPhone users, so it would be good for Apple, O2, and the Carphone Warehouse if some inexpensive upgrade plan was offered.

Even with a £100 handset, many consumers will struggle with the £35 per month minimum contract. Unfortunately, the likelihood is that, with a heavily subsidised iPhone, the monthly cost will remain high.

What do you think? Is a cheaper iPhone likely, and how much would you expect the minimum monthly contract to be?

(Via Times Online)

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