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apple, iphone, o2, o2 ukO2 UK slashes 8GB iPhone price

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Smaller version of Apple's device now £100 cheaper.

From tomorrow O2 UK customers can buy the 8GB version of the iPhone for £169. The limited-time offer runs until June 1st and is available online and from O2 and Carphone Warehouse stores.

It's an unexpected move and, strangely, the 8GB device will continue to sell for £269 in Apple's own UK stores.

If product cycles for other Apple products are any guide, the new offer could suggest O2 is attempting to clear its own stock of 8GB devices to pave the way for the widely expected June arrival of a 3G iphone.

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The 16GB version remains priced at £329 by O2, however, with tariffs for both devices also static, starting from £35 a month.

O2 says 60 per cent of iPhone customers are new to its network and spend on average 30 per cent more than its other pay monthly customers.

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