Those looking to pick up an 8GB iPhone in Austria can do so for €1. T-Mobile which carries the iPhone in Austria and Germany dropped the price of the 8GB handset on Monday from €99 to just €1 (on a €45/month contract).

In addition to the massive saving on the handset, T-Mobile is offering the first month free, a saving of €45 and is offering another €45 for orders made online.

In light of the carrier looking desperate to shift units some sites have reminded us that in February 2008 Apple released the new 16GB iPhone.