It looks like French iPhone hopefuls are next in line to see a drop in the price of current-generation iPhones. Reports are pointing towards Apple working with Orange France to offer subsidies for the iPhone. As it stands, Orange is not allowed to offer any purchase subsidies on the iPhone, but with the 3G iPhone launch looming, and plenty of iPhone stock remaining, things will likely change.
Apple COO Tim Cook purportedly received Orange executives for a meeting in California to discuss possible price cuts on the iPhone. The introduction of a subsidy for the iPhone will require a reworking of the revenue sharing agreement between Orange and Apple.