It's an iPhone fire sale! Prices are being slashed, deals are being made and prices are innnsaaannne! Everything must go!

That's right, all you Germans and Brits can take advantage of some major cuts to the price of the iPhone handset (though the service plans remain the same.) T-Mobile has dropped the cost of an 8GB iPhone to 99 euros, while folks over in the UK can now get their hands on the iPhone for a mere 167 pounds. If you want a 16GB iphone however, you're still going to pay full price.

Now, depending on your point of view, this is either a good thing or an ominous sign.

16 Apr 2008

If you're looking on the bright side, this is very likely a clearance of the old iPhone models in preparation for a 3G version of the iPhone.

Jobs said last summer that the company was working on a 3G iPhone, and Saint Steve virtually never talks about a product that isn't already green-lighted and on its way. At the time, Jobs said that battery issues were the only thing holding the new phone back.

A price drop could very well indicate that Apple has figured the battery drain issue out and wants to clear out stock for a big new release this summer.

Of course, if you're a pessimist, this could also be news. It's no secret that the iPhone has not met the expectations of many analysts. With a new crop of smartphones hitting the market, it could be that carriers are getting nervous and looking to drop the iPhone's price tag in order to compete with the latest offerings from bigger manufacturers.

So, is this price cut a simple clearance of the old stock, or is Apple starting to feel the heat from the 'iPhone killers'?