iPhone prices cut in Austria

T-Mobile Austria has decided to drop iPhone prices, hoping the new deal will bring in more customers. While the 8GB iPhone 3G retailed for €99 with a €45 monthly plan, it now costs a measly €1 with the same exact plan. That’s a €98 discount, starting today. And if this price cut isn’t enough, T-Mobile is waiving fees for the first month and offering a €45 discount for those who place their orders online. Although price cuts happen everyday, it’s quite rare to see an Apple product in such a situation. This is the first iPhone 3G price drop heard of so far, and if it goes well, it may just inspire similar price drops all over the world. Cuts are likely due to the global recession, but this same recession may also harm iPhone shipments, as the device is seen as a “luxury item.”

The iPhone 3G has seen one price drop, though, as a refurbished item. However, new iPhones have been the same price since release. Hopefully, if a new iPhone is released this summer, the iPhone 3G prices will drop to make way for a newer model.

Via [MacNN]