O2 Slashes 8gb iPhone

O2 have slashed the price of the 8gb iPhone this week to £169 a reduction of more than a third off the original cost of £269. The 16gb, however, remains the same.
From now until June 1st O2 and Carphone Warehouse stores will be selling the 8gb iPhone at the cutdown price of £169. As this is a network initiative Apple retail stores will not be following suit. O2 cited that the cuts "will create additional momentum for what has been O2’s fastest-selling device."

O2 noted that iPhone users are among its most satisfied customers and said the deal aims to "bring its benefits to an even greater number of customers."

"The iPhone has also been hugely successful in attracting new high-value customers to O2 who are also more likely to recommend O2 to their friends and family. Sixty percent of iPhone customers are new to O2, while iPhone customers spend on average 30% more than other pay-monthly customers," O2 said.

The move matches a discount recently initiated by Apple’s German network partner, T-Mobile, from £315 to £78 but the discount isn’t being applied on sales of the 16GB iPhone, which continues to cost £329.

The price cut has fueled speculation of a new 3G handset to be hitting our shores in June/July, and is seen as a ploy to drain stocks in advance.

Apple declined to comment on potential 3G iPhone. "We don’t comment on rumor and speculation," a spokesman said.

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