iPhone price reductionWell this will certainly put the rumour mill into overdrive with regards to the iPhone. O2 have slashed the price on the 8GB iPhone from launch price in November of £269 to £169 - a reduction of £100.

It will come with the same tariff’s that O2 originally released but the 16GB iPhone will remain the same price of £329 for the time being.

What this will engage is further rumours in the industry that the iPhone in 3G format is due in the next 2-3 months. Apple would appear to be trying to shift on the previous model as much as possible in order to release the 3G version.

It is great news for anyone who wants to get their hands on a brand new iPhone.

Discounted handsets are available immediate - check out the latest iPhone deals.

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