The Guardian says that in some cases, the iPhone will even be free to new subscribers:
… the handset will be offered at lower prices – or even for free. Those who sign up for a contract costing £75 a month will be offered the handset for no extra charge, breaking with Apple’s earlier attempts to avoid the large subsidies common in the rest of the industry. Elsewhere, the gadget is likely to be subsidised to lower the price, which could drop from £269 to as little as £100.
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About the author
Leander Kahney is the editor and publisher of Cult of Mac, and author of three books about technology culture: Inside Steve’s Brain, the New York Times bestseller about Steve Jobs; Cult of Mac; and Cult of iPod. Leander has written for Wired, MacWeek, Scientific American, and The Guardian in London. Follow Leander on Twitter @lkahney and Facebook.