Deutsche Telekom unit T-Mobile said Monday it will sell Apple's new third-generation, or 3G, iPhone in Germany from as low as EUR1.

This represents a significant price cut compared to the first version of the device, which cost EUR399 when it launched in November.

T-Mobile said Monday the 8 gigabyte version of the 3G iPhone will be priced from EUR1 to EUR169.95, depending on the customer's rate plan. The 16 gigabyte version will be priced from EUR19.95 to EUR249.95.

T-Mobile will sell Apple's device exclusively and customers are required to sign a two-year contract when buying the iPhone.

In the U.S., the 8GB version of the new phone, which can run on faster networks than earlier versions, will retail for $199 including a subsidy from exclusive operator AT&T, down from $399.

Earlier this month a T-Mobile spokesman told Dow Jones Newswires the new version of the iPhone would be cheaper than the older version.

T-Mobile will launch the new 3G iPhone July 11 in Germany.

T-Mobile will also start selling Apple's the new iPhone in Austria and the Netherlands the same day.

T-Mobile said earlier this month that it will sell the phones in Croatia, the Czech Republic, Hungary, Poland and Slovakia later this year.

Deutsche Telekom Chief Executive Officer Rene Obermann said recently T-Mobile had sold 100,000 iPhones in Germany since its launch in November 2007.

T-Mobile existing iPhone customers in Germany will be entitled to upgrade to the new 3G version, the provider also said.

Source:Dow Jones