O2 cuts prices on the iPhone

As anticipated the price of the iPhone as dropped as has happened in Germany and the US.

The Uk network provider O2 and the Carphone Warehouse have cut the price of Apple’s iPhone by £100 and the 8GB is now available for £169, although the recent 16GB model will not be subjected to the same price cut.

Following the German carrier T-Mobile who announced that they were dropping the price of the 8GB iPhone to €99, O2 have followed suit as the rumours of the arrival of the 3G iPhone expected this summer.

This follows O2 change of tariff which reduces the cost of owning an iPhone as it includes 600 anytime minutes and free text messages and internet browsing available form just £35 per month.

The main hurdle that is slowing the release of the 3G version seems to be the problematic battery life, as it was originally scheduled for release earlier this year.

Apple chief executive Steve Jobs has said that the 3G version will be available shortly.

Although analysts have also read into the price drop as a sign that the iPhone sales are not reaching their target as a result of still opposition from Nokia and Blackberry following a report in the Financial Times.