In anticipation of a new iPhone model coming to Germany, T-Mobile has drastically slashed the price of the existing 8GB model from €399 to just €99 for German customers. This lower price equates to approximately $155 USD, where the 8GB iPhone is currently going for $399 with a 2 year contract in the United States.
The €99 iPhone is being offered for a limited time from April 7 through June 30 and comes with a 2 year plan for 89 euros a month. The 16GB model price appears to remain untouched with a price of €499. Apple has been rumored to have a new, faster 3G version of the iPhone in the works and this promotion may be a way to unload some of the older models prior to the launch. Alternatively it could also just be a promotion for Apple and T-Mobile to unload some of their inventory due to poor sales of the iPhone in the area due to the heavy competition of mobile handsets that are 3G enabled.