Rumor: O2 May Drop iPhone 3G Prices in May Prior to Release of New Model

UK phone carrier O2 may drop prices on Apple’s iPhone 3G handset come May according to Mobile, a regional technology-centered magazine. The publication cites exclusive information, pointing to the device becoming free with £35 or £45 per month subscriptions. The 8GB iPhone is currently available for free with £45 and £75 plans, while the 16GB model is free only at the £75 level.
The purpose of such a move is thought to be aimed at clearing inventory space ahead of a new generation of iPhone, which is generally expected to be released in June or July in the same manner as the first and second generations of the handset’s 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.
Additional information on a new generation of iPhone hardware is expected on March 17th, when Apple will preview its iPhone OS 3.0 firmware at a press event in Cupertino. Potential features may include true background processesing, vector-based GPS positioning, and possibly tethering or MMS messaging.
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.
Stay tuned for additional details as they become available and please let us know what you think in the comments or forums.

UK phone carrier O2 may drop prices on Apple’s iPhone 3G handset come May according to Mobile, a regional technology-centered magazine. The publication cites exclusive information, pointing to the device becoming free with £35 or £45 per month subscriptions. The 8GB iPhone is currently available for free with £45 and £75 plans, while the 16GB model is free only at the £75 level.
The purpose of such a move is thought to be aimed at clearing inventory space ahead of a new generation of iPhone, which is generally expected to be released in June or July in the same manner as the first and second generations of the handset’s 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.
Additional information on a new generation of iPhone hardware is expected on March 17th, when Apple will preview its iPhone OS 3.0 firmware at a press event in Cupertino. Potential features may include true background processesing, vector-based GPS positioning, and possibly tethering or MMS messaging.
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.
Stay tuned for additional details as they become available and please let us know what you think in the comments or forums.