Orange France is rumored to be reducing the price of its iPhone 3G models to 100€ (~$125 USD) for the 8GB model and 130€ (~$165 USD) for the 16GB version.

According to reports this will take effect on Nov. 13th.

If this proves true, it will make the iPhone much cheaper in France than in the U.S. What is not clear, however, is if this is something that will be effective more universally, or if it is merely something Orange France is doing to increase interest in the device in their country.

In the last quarterly results call Steve Jobs made it very clear that Apple does not want to leave too large a window below their price point, to keep competitors from under cutting their sales, so it is entirely possible that we could see some kind of price reduction across the board…although that is pure speculation on my part.

As many of you may remember, I originally thought the $199 rumors were insane – so I don’t have the best track record with this sort of thing. Bottom line is, this rumor is being reported from a variety of places in France, but we’ll just have to wait and see if it has any truth to it in a few days.