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O2 Cuts Price of iPhone by £100 in UK

Wednesday, April 16th, 2008 at 10:10 AM - by

O2 has cut the price of the 8GB iPhone by £100 (US$197.62) to £169 ($333.98) in the UK, once again fueling speculation that a new version of the device, likely a 3G iPhone, will soon be released. The price cut is specifically advertised on O2's UK Web site with a June 1st deadline, and the 16GB iPhone remains at its £329 price.

Earlier in April T-Mobile lowered the price of the iPhone in the German market to €99 ($157.92), the first such price cut from a carrier in any of Apple's iPhone markets. That price cut added fuel to speculation of a revision to the product, and today's price cut does the same.

"More and more this is starting to look like they want to clear stock of an older model, with a looming revision to the iPhone which will likely include 3G," CCS Insight analyst Ben Wood told Reuters. "But also we think the iPhone has slowed down during the first quarter and we think [a 3G launch] should give sales a bit of a lift."

An Apple spokesperson also told Reuters that the price cut was an O2-specific promotion, and that the iPhone price would not change at the retail level.

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