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O2 slashes cost of iPhone by £100

Apple's iPhone price to be slashed to £169 on O2 contract this week

O2 is set to slash the cost of Apple’s iPhone, knocking £100 off the price, taking the cost of the iPhone down to £169 as of tomorrow (Wednesday 16 April).

The news comes from a report in Mobile magazine and, according to the report, "follows T-Mobile's decision to reduce the price of the handset from £315 to £78 [99 euros] in Germany".

The £169 new iPhone price tag on O2's £35 per month tariffs gives users 600 minutes and 500 texts a month.

Not bad. Although you might want to hang fire for a month or two, as the price cut will of course stoke the fires of the ‘3G iPhone to launch soon’ rumours.

As ever, Apple was not able to comment on rumour or speculation.