Orange will reduce the price of its iPhone 3G from 149 Euros to 99 Euros between the 13/11/2008 and the 14/01/2009 to make the most of the forthcoming festive season, prompting rumours that the move might spread out to other markets.
The minimum monthly contract in France will cost you 45 Euros (roughly £37) over 24 months which will probably be the minimum contract to qualify for the promotion.
French website Macbidouille is also reporting that the price of the 16GB iPhone will be reduced to 129 Euros.
Whether this will be a worldwide Apple-backed promotion remains to be seen; O2 sells its cheapest iPhone for £99 and a similar 33 percent discount would bring the price to £70-ish and make it even more attractive.
The guys at Stuff have heard of a possible price cut for Christmas and alternatively, O2 could drop its monthly charge to get the iPhone for free from £45 to £40.
And so it seems that Apple is taking no risks as it slashes costs ahead of the full launch of the Blackberry Storm and the T-Mobile G1.
O2's iPhone Pay Monthly Tariff page