iPhone 75% Price Cut in Germany Boosts 3G Rumors

T-Mobile, a unit of former German Deutsche Telekom and the sole German retailer for the iPhone, has slashed the price of the iPhone significantly, prompting widespread rumors that 3G iPhone is likely to come in just a few months from now.

Starting Monday, April 7, German consumers will be able to purchase the original 8GB iPhone for as little as 99 Euros, a 75% price drop. Normally the 8 GB iPhone model sells for €399.

But, as with any great offer, there is a catch! German customers will only get the discounted iPhone price if they sign up T-Mobile’s 2 year contract and choose the most expensive “Complete XL” service plan priced at €89 per month. Those who take the cheapest “Complete S” service plan, which is priced at €29 per month, will have to pay the hardware €249 (see all service plans).

The iPhone price cut promotion by T-Mobile in Germany runs from April 7th to June 30th prompting rumors of a new 3G model. It is likely that by the time this offer for ends, T-Mobile will be completely out of stock of the model.

Bernstein Research analyst Toni Sacconaghi believes the price cuts suggest that T-Mobile has excess inventory of 8 GB phones, and that a new 3G phone is likely coming as expected at mid year. Sacconaghi believes that this would be consistent with recent comments from AT&T Mobility President Ralph De La Vega, who said at the CTIA conference Wednesday that all of AT&T’s smartphones will be available with 3G in the next few months.

Furthermore, Sacconaghi claims that about 25% of Apple stores now have both 8GB and 16 GB models,  another 25% have just the 8 GB units, while the rest  50% still have no inventory. Apple Inc. is widely expected to launch a 3G high speed version of the iPhone this year perhaps as early as May or June.