French newspaper Les Echos is reporting that Apple is adopting a new tactic to sell an increasing number of iPhones. Apple is reportedly applying pressure to cell carriers, especially Orange, to subsidize iPhone prices in order to make the initial purchase less intimidating. After all, it’s no surprise Europeans aren’t buying iPhones- the $630 price tag is far too steep, especially for a population that is used to getting handsets for free. If Orange agrees to follow Apple’s demands, European customers may be seeing decreased handset prices, albeit at the expense of more restrictive contracts. Why? Orange isn’t going to simply drop prices on an already low-profit device- they’re going to reimburse those losses with longer contract periods and higher monthly costs.

In addition, Italian newspaper La Repubblica is reporting that Telecom Italia will be offering a subsidized iPhone in the near future as well.