iPhone could hit retail for as little as ?360

France Telecom boss hints at near-contract cost for SIM-free model
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On the eve of the French launch of Apple's iPhone, Didier Lombard, France Telecom's CEO, has said that his company would sell iPhones "significantly lower" than its rival, T-Mobile, are in Germany.

Last week T-Mobile was forced to sell iPhones unlocked after a successful complaint by Vodafone to the German court. In response T-Mobile slapped a price tag of €999 (£714) on the unlocked device, which would surely put off consumers from buying it for alternative carriers.

However in a radio interview with Europe's Radio One today, Lombard said his company's Orange subsidiary will undercut T-Mobile with a price point between €500 (£360) and €1000. French law states that mobile phones have to be sold without customers having to commit to a carrier contract.

Lombard also said that Orange has set an end-of-year sales goal of 100,000 iPhones.