O2 noted that iPhone users are among its most satisfied customers and said the deal aims to "bring its benefits to an even greater number of customers."
"The iPhone has also been hugely successful in attracting new high-value customers to O2 who are also more likely to recommend O2 to their friends and family. Sixty percent of iPhone customers are new to O2, while iPhone customers spend on average 30% more than other pay-monthly customers," O2 said.
The move matches a discount recently initiated by Apple’s German network partner, T-Mobile, from £315 to £78 but the discount isn’t being applied on sales of the 16GB iPhone, which continues to cost £329.
The price cut has fueled speculation of a new 3G handset to be hitting our shores in June/July, and is seen as a ploy to drain stocks in advance.
Apple declined to comment on potential 3G iPhone. "We don’t comment on rumor and speculation," a spokesman said.