8GB iPhone prices slashed; now cheaper than the iTouch

As reported yesterday, O2 and Carphone Warehouse have cut the price of their 8GB iPhone to £169 but the 16GB model is still available for £329 with the 8GB iTouch for more than £180.

The £100 reduction is a limited offer that ends on the 1st of June and happened after the T-Mobile cut the price of their 8GB iPhone to 99 Euros.

It seems as if Apple is looking to make the most of the first quarter of the new 2008/2009 financial year by trying to boost sales.

The price cuts are apparently making way for the next generation 3G iPhone and it looks as if the 16GB iPhone will become the entry level version with the 3G version being sold for a premium.

But according to some, like BBC's technology correspondent Rory Cellan-Jones, it could also mean that the iPhone is not selling as well as it should and the pricing could have been one of the obstacles.

Of course, the price cut could see people purchase the 8GB iPhone instead of the 8GB iTouch for up to £30 cheaper.

Perhaps it would have been wiser for Apple and O2 marketing departments to cut both the £35 tariff and the £269 at the same time; our guess at ITProPortal.com is that O2 said no to further cuts (remember, Apple is taking a percentage on ALL contracts).

Apple has sold 2.3 million iPhones by December 2007; but sales appeared to have flattened partly due to the adverse economic conditions prevailing in the US and in Europe.

Steve Jobs is still a very long way to reach its 10 million iPhones target by 2008 and the 45 million goal post set by Piper Jaffray analyst, Gene Munster is even further.