Apple, Orange negotiating iPhone price cut

Apple and Orange are in talks to lower the price of the iPhone in France, according to a report from French business daily Les Echos. Citing a source close to Orange, the article says that Apple is encouraging Orange to adopt the subsidized pricing model, currently being used by O2 in the UK and T-Mobile Germany to sell iPhones with mobile contracts, in order to boost sales. Orange is said to be seeking a revision in its revenue-sharing agreement with Apple in return for subsidizing the phone; however, the company told Les Echos there was “no question of changing the business model of the iPhone,” adding that “everything is going well.” According to the report, sales of the iPhone in France have reached 100,000 units since its launch on November 29, 2007.

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