Though it’s not a free 3G iPhone as O2 is offering, T-Mobile Germany will be offering their 8GB 3G iPhone for as low as 1 euro with a 69 euro contract. The 16GB model will go for as low as 39.95 euro or 19.95 euro with the 69 or 89 euro plan.

Over on the US side, AT&T will sell the 8GB 3G iPhone for a fixed price of $199 no matter which plan the customer picks.

Retailers have drastically dropped the price of the previous iPhone in anticipation for the 3G iPhone and carriers are heavily subsidizing it in order to woo more customers.

The iPhone has shot to the top of smartphone sales ever since its launch in June last year. Unlocked and some free iPhone has been surfacing around the net to cater to customers in other countries which the iPhone has not yet reached.

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