The new 3G iPhone is rumored to be available in the UK as early as July. However, the most interesting reports include information that this newest version of Apple’s most popular product could be available for as little as £100. Steve Jobs is expected to unveil the new iPhone at Apple’s Worldwide Developers Conference on June 9th and a release for UK users is expected sometime in July. As part of a strategy to boost initial sales, rumors are also flying that Apple will allow operators to subsidize the device, which could allow them to drop the initial price from the original £269 to just £100. Apple however, had no comment on the story.

The up and coming and highly desirable 3G iPhone could be available for free through O2, UK’s premier service provider. The company, upon noticing the massive sales after the £100 price cut on the 8GB model, has decided that if they offer a free iPhone they may see even more people coming aboard. The deal will only be offered through AT&T outlets and not directly through the Apple store. Although many iPhone users are still locked into their 18 to 24 month contracts, O2 may find it a bit difficult to encourage new users to sign up. The two companies may offer an upgrade to appease those who fill still feel cheated after supporting the iPhone from the beginning.