O2 and The Carphone Warehouse have cut the price of Apple's 8GB iPhone in the UK by £100, a move seen as the latest sign that Apple will launch a new 3G iPhone in June.
The 8GB iPhone will be available for £169 until June 1, although the price of the 16GB model remains at £329.
O2, Apple's exclusive mobile operator in the UK, was believed to have sold around 190,000 iPhones in the first eight weeks of the handset's availability on this side of the Atlantic - 10,000 units short of its target. However, the iPhone remains O2's fastest-selling mobile phone, and the operator's move in February to double iPhone owners' call time and text allowances added to the appeal of the handset.
But many analysts believe 3G support could provide an even bigger boost to iPhone sales. Apple's sole US operator - AT&T - has previously suggested a 3G iPhone would become available during 2008 and many believe the product will be launched at Apple's developer conference in June.