The price cut comes ahead of the launch of the new upcoming 3G model.
The 8GB model will be available for 169 pounds until June 1st while the 16GB model will remain at its now markedly expensive 329 pound price tag. The device remains O2's fastest selling device and the operator hopes the price cut will create even more momentum before the launch of the new updated model.
Earlier this month T-Mobile reduced the price for the smaller iPhone in Germany in an effort to spur sales.
"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 this (a 3G launch) should give sales a bit of a lift."
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Written by: Andre Yoskowitz @ 16 Apr 2008 18:22