Per a report over at the Times, Apple may subsidize the next generation iPhone, introducing the handset at a £100 price.

UBS analyst Maynard Um thinks the new iPhone could be available across Europe for as little as €99, but will cost £100 in the UK, where O2 has the exclusive distribution deal.

“They are also looking for more flexibility on how the operators can price the iPhone, although I am not convinced that they will let them have open season on the price, as they have a lucrative iPod market to protect,” said CSS Insight analyst Ben Wood.

Apple is reported to ship the next generation iPhone in the UK in July, shortly after the unit's U.S. launch.

As always, let us know what you think over in the comments or forums.