Following the news that the 3G iPhone could cost as little as £100 in the UK, Forbes is reporting that the next-gen version will go on sale in Spain for under 100 euros (presumably 99).

What makes this of particular significance is that the operator said to plan to sell the Apple mobile for this price point in Spain is Movistar - owned by Telefonica - also O2's parent company.

Spanish news sources are stating that the iPhone (apparently complete with video camera and GPS) will be sold in Spain at the subsidised price in exchange for "two to three years of client loyalty".

Industry experts say Apple is allowing operators to set their own pricing for the iPhone 2.0 to boost sales in order to hits its 10 million sales target for this year.

Steve Jobs is expected to unveil the second-gen, 3G iPhone at the company's WWDC08 developer event in the States next week.