O2 to slash 3G iPhone price?

It could be a very profitable summer for O2. Already rumoured to have bagged the much-hyped Palm Pre , the mobile network could have a new iPhone on its hands too. According to Mobile Today, O2 is cutting the price of the iPhone in May, with the 3G iPhone to be offered free on O2's £35 and £45 per month tariffs from May. Currently, you have to sign up to a £75 per month contract to get a 16GB model for nothing. Is there a catch? Well, there's rumoured to be a very big one. You see, O2 hasn't just got charitable, the story claims this is a stock clearing exercise in preparation for an all-new iPhone (you can make that 'oooh' noise now), believed to be incoming in June or July. Is it the nano iPhone that's been talked about for some time? Only time will tell. But there is a downside to all this for O2. According to the same report, Orange is in talks with Apple to share the new iPod with O2. Which could explain O2's rush to bag that Palm Pre. Watch this space for more ... (link)