The UK division of T-Mobile has slashed prices on the Android-based G1 smartphone, an announcement reveals. People should now be able to get the phone for free when signing up for a £30-per-month contract; previously, the G1 could only be had for free with a £40 tariff plan.

While industry sources suggest the £10 drop is in an attempt to “overcome fierce competition from other high-end devices”, T-Mobile insists that it’s not a reaction to poor sales.

A T-Mobile spokesperson told Mobile: “We have chosen to offer the device free with a £30 contract to make the pricing more competitive in light of recent device launches. We are well on track to achieve our sales forecasts”.