At Absolute Gadget we hae been eagerly awaiting the oft-rumoured 3G version of Apple's iPhone (we've had the first iPhone in for review when it came out). Of course, we have speculated which family member we would have to sell in order to get our dirty mitts on this Jesusphone, but now it looks like granny can breath easy - O2 may sell the new raprod for one hundred English pounds.

According to an article in the Times,this new shiny phone could be on sale by next month and will be subsidised in order to make the phone fly off the shelves in the UK for £100 only. Of course, if you live in Euroland it will only costs 99 Euros. (Not sure what the exchange rate is but its bound to be cheaper, ain't it.)

As reported by Absolute Gadget, the 3G iPhone could sport really amazingly fast mobile broadband. I is believed that the phone will debut next week at the Apple lovefest that is Apple's Worldwide Conference in San Francisco.

Mobile operator O2 has the exclusive rights to the iPhone in the UK and its parent company Telefonica has taken the subsidy route in order to flog as many of the devices as possible. With that in mind, Apple and Steve Jobs could hit that sales target of 10 million iPhones sold by the end of the year.

Apple could also go down the route of not tying the device to one network. Telecoms analyst at CSS Insight, Ben Wood said that Apple has recognised that its "exclusive deals with operators pushed more people to unlock iPhones and meet demand from customers on competing networks who wanted Apple's hot product."

In other words everyone will have a cheap iPod by the end of the year.