The term “iPhone discount” is not something you hear every day, but U.K. operator O2 is reportedly dropping its iPhone pricing ahead of the iPhone 3.0 release this summer, and rumor has it that it might lose exclusivity on the device to rival carrier Orange UK.
Starting in May, subscribers will be able to get the 3G iPhone for free when signing up for a £35 or £45 per-month, 18-month contract. Right now, the iPhone costs £59, £99 or £159 if opting for those plans. The idea of course is to clear the shelves to make way for the next version of the hot Apple device.
There might be another reason to chop pricing: O2 has sold 1 million iPhones in the United Kingdom, making it the largest European market for Apple. However rumors in the blogosphere are ongoing that Orange will start selling the smartphone in Britain: it does after all sell the iPhone in 27 other countries.
