iPhone Prices to be slashed by £100 to make way for 3G version

Following the move by T-Mobile in Germany to slash prices of its 8GB iPhone to 99 Euros, O2 and Carphone Warehouse look set to bite the bullet and cut the price of iPhone handsets by up to £100 as from tomorrow, Wednesday 16th April.

The cut in price will help retailers clear their stock for the 3G version of the iPhone which is rumoured to be release in June at Apple's Worldwide Developers Conference in San Francisco.

O2 and Carphone Warehouse have resisted calls since the iPhone launch to cut its price; instead, O2 revised the text+call bundle included with the iPhone, increasing the more popular £35 tariff to 600 minutes and 500 texts.

It is expected that Apple will keep its price of £200 for the entry level iPhone, adding 3G capabilities and a better camera phone.