On the heels of T-Mobile's discounting of the 8GB iPhone, the UK carrier O2 is also cutting prices on the lower-capacity model by a full £100, dropping the base price of the handheld (with plan) to 169 pounds -- deal good through June 1.

More portents of 3G iPhones on the way? Or just a clearing of slow-moving stock on the entry level phone? Either way, if you're a Brit with a yearning for an iPhone, the cost of entry just got lowered.

Thanks to everyone who sent this in.

This article was originally published on Tuaw.
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