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O2 to drop prices before iPhone 3G replacement?

updated 04:45 pm EDT, Thu March 12, 2009

O2 planning May price cut?

UK phone carrier O2 is poised to drop prices on the iPhone 3G come May, claims a regional magazine. Mobile cites exclusive information, pointing to the device becoming free with 35 or 45 per month subscriptions. The 8GB iPhone is currently free with 45 and 75 plans, while the 16GB model is free only at the 75 level. Practical costs of iPhone ownership can rise as high as 159 a month.

The purpose of the bargain is thought to be aimed at clearing inventory in advance of a new iPhone, generally expected to be released in June or July in the same manner as first- and second-generation hardware. Mobile sources also claim that Apple is in negotiations with O2 rival Orange, which may finally result in a second official carrier for the UK. The region is currently one of the few worldwide -- including the US -- to be limited by exclusive iPhone arrangements.

More information on the new iPhone is expected on March 17th, when Apple will preview its v3.0 firmware at a press event in Cupertino. Potential features may include true background processes, vector-based GPS positioning, and possibly tethering or MMS messaging. In terms of hardware, some analysts and sources have speculated that Apple may intend to release a cheaper companion iPhone, serving a role similar to the iPod nano in comparison to the iPod classic.





by MacNN Staff

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Comments

  1. Geobunny

    Joined: Dec 1969

    +3

    Wrong thing to drop

    The price of the handset isn't the sticking factor here, it's the exorbitant price of the contract (along with the lack of many features) which stops me getting one.

    Bring down the pay monthly prices and I'm on board.

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