Steve Jobs gives 3G Apple iPhone a flexible price

When the first Apple iPhone was released it had many options for consumers and phone carriers blocked, this included setting different pricing options depending on the rate you pay. With the 3G iPhone (aka second generation iPhone), these shackles have been removed and Steve Jobs is giving a lot more flexibility to the price.

We are hearing that service providers will be allowed to set just about whatever price they want with the 3G iPhone, this has let loose rumors that O2 in the UK will offer the phone from free for high-tariff users and £100 on an 18 month contract. There could even be a pay-as-you-go 3G iPhone, not sure what the price would be there but I am sure it will not be cheap.

The United States will also see AT&T determine what price to set for iPhone 2.0 and this freedom will most likely see AT&T subsidize the 3G iPhone price as well, depending on what service agreement you sign. As with all things claimed to be free, you will be certainly paying a lot more in the long term thanks to higher monthly payments but to high callers that could still work out a good deal.

The Worldwide Developers Conference 2008 starts tomorrow and while the above rumors have not been confirmed, our guess is they will be along the right lines. Check back Monday for all the breaking news coming out of the WWDC.