T-Mobile in Germany has slashed 8GB iPhone prices as it drums up business, sparking speculation of a the imminent release of a new model of the device.

In an offer posted on its website on Thursday, T-Mobile offered the mobile for as little as €99 when purchased in conjunction with a two-year contract costing €89 per month from April 7 through June 30.

The 16 gigabyte version will continue to cost €499, in conjunction with a minimum 49 euros-per-month two-year contract.

Apple is widely expected to launch a 3G iPhone in June. T-Mobile parent company Deutsche Telekom confirmed it had sold 70,000 iPhones as of the end of January since the product's launch in November.