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O2 slashes STG100 off iPhone price
Wednesday, April 16 2008
by Emmet Ryan


The price of Apple's UK iPhone has been slashed by mobile
operator O2 -- fuelling speculation a 3G version will be
launched this summer.

The 8GB iPhone can now be bought for STG169 until 1 June 2008
-- reduced from STG269 -- on O2's 18-month contract, which
includes data browsing and free access to The Cloud's 7,500
Wi-Fi hotspots. The offer is subject to stock availability.



The price cut means the 8GB iPhone is now cheaper than the
8GB iPod Touch, which sells in the UK for STG199.



The 16GB iPhone remains priced at STG329.



The price cut will also fuel speculation that O2 is trying to
shift stock before the much-rumoured launch of a 3G version
of the iPhone in June.



Both Apple and O2 remain tight-lipped on the 3G iPhone
speculation but analysts at the Bank of America predict Apple
will launch the high-speed wireless version of the device in
the second quarter of this year and produce up to eight
million handsets in the third quarter.



O2 maintains the iPhone has been key to attracting new high
value customers, with 60 percent of iPhone customers new to
O2 and 30 percent of iPhone customers spending on average 30
percent more than others on pay monthly tariffs.





Andy McCue writes for Silicon.com.

Reprinted with permission from href="http://www.silicon.com">Silicon.com



ENN note: Here in Ireland, where the iPhone has been
on sale for just over a month, a spokesperson for O2 told ENN
the mobile operator had no plans for a similar price
reduction but that it will continue to look at prices and
consumer reaction to the handset.