Breaking News: T-Mobile slashes iPhone prices to €99 in Germany; launch of new 3G iPhone imminent?

You might had read many rumors about the launch of new 3G iPhone, lately almost every other day we have had folks from every corner of the blogosphere claiming that Apple will be launching the new 3G iPhone soon. The latest claims were based on the news that there was shortage of the iPhone across all US stores.

Though I agree that the launch of the new iPhone is imminent, I have been resisting reporting these rumors as it appeared to be pure speculations but the latest announcement by T-Mobile Germany of slashing the price of the iPhone to €99 makes it quite interesting. It could indicate that Apple is gearing up for the launch of the new version of the iPhone.

T-Mobile Germany has just announced that starting 7th April 2008, the 8Gb iPhone will be available for as little as €99 instead of the current €399 price, a massive 75% discount, as part of what they are calling the "Spring Promotion" which runs from April 7 through June 30.

The price cut is based on the tariff one opts for, the €99 price is for the costliest tariff plans while the cost goes up to €249 for the cheapest tariff plans.

This announcement by T-Mobile Germany could be due any of these reasons:

  1. T-Mobile is looking to subsidize the iPhone due to possible slow down in sales in Germany as its speculated that cost of the iPhone is a significant barrier in Europe and the reduced pricing based on tariff plans does indicate it.
  2. Apple is looking to completely phase out the 8 GB model and will release a higher capacity 32 GB iPhone like we have for iPod Touch.
  3. Apple is preparing the launch of a completely new version of the iPhone.

If T-Mobile was indeed looking to subsidize the iPhone because of the cost barrier, then wouldn’t it have been logical for them to also subsidize the more expensive 16 GB iPhone model? Thats not the case, as the 16 GB model still costs €499. So in my opinion that rules out reason 1.

Though I wish and hope its the 3rd reason (new version of the iPhone) especially since its been a year since the iPhone was launched on 29th June 2007 and a reasonable expectation if you look at the speed at which Nokia releases new versions of their mobile phones. However just like the reason for subsidizing only the 16 GB model does not make sense, the price cut only on the 8 GB model for the new version of the iPhone also does not seem logical.

So, I believe the real reason for the price cut is because Apple is planning to launch the 32 GB model and will phase out the 8 GB model and T-Mobile is simply bundled as a promotion to cleanup the stock of 8 GB iPhones with a higher incentive for those going for a costlier tariff. Lets hope I am proved wrong.

As for folks in the US, if you are hoping to see a similar price cuts in the US then it might not happen anytime soon as Apple is still grappling to meet the current demands.

You can read T-Mobile’s announcement here.

What do you think about the latest announcement by T-Mobile Germary?

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