Orange already has several iPhone exclusives in France, Austria and many other countries, so it's no surprise the company would also be interested in targeting the UK customer base.
Apparently, due to the lack of sales, Apple has the right to break the exclusivity deal which would otherwise have seen O2 being the sole provider until 2011.
The extreme shortage of iPhone's in stock at O2 couldn't have helped matters, for the currently beleaguered company.
Some believe that a deal with Orange will help further the iPhone's push into corporate territory, more effectively than what O2 can provide.
Several sources have all whispered the same thing, and it now seems almost inevitable that you'll be able to pick up an Orange iPhone in October.