UK mobile firms O2 and Carphone Warehouse are to cut the price of Apple’s iPhone by £100.
The 8GB iPhone will now cost £169, but the newer 16GB model will not receive a price cut.
O2 confirmed speculation that it would follow German carrier T-Mobile, which announced last week that it will drop the price for the 8GB iPhone to €99.
O2 has already reduced the cost of owning an iPhone by overhauling its tariff structure to allow users more voice minutes and text messages.
The news follows rumours of a possible 3G iPhone coming this summer. The cuts have added to speculation that suppliers are clearing out stock in anticipation of a new release.
Apple chief executive Steve Jobs said last year that the company is working on a 3G version of the iPhone scheduled for release in 2008.
At the time, Jobs listed battery life as the main hurdle facing the development of a 3G iPhone.
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