The UK carrier of the iPhone has dropped the price of the 8GB model to 169 GBP. The price drop is good till June 1st with any O2 contract. The price is also good at Carphone Warehouse but at neither location is the price of the 16GB iPhone affected. This price cut comes on the heels of a similar one from T Mobile in Germany.
Does this mean that sales in both countries have been less than the companies hoped for or do they know a new 3G iPhone is coming and are trying to clear stock before its introduction? Either or both could be true, only time will tell.