O2 preparing for new iPhone with price slash?

Orange also tipped as a new UK carrier for Apple's baby

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O2 is preparing to slash the price of the iPhone 3G as it tries to empty its store cupboards ready to put lots of shiny new Apple phones in there instead.

According to Mobile Today, O2 will drop the price of the iPhone 3G to free on all contracts up to £45, although it doesn't state if this will be the 8GB or 16GB version.

The move mirrors similar action taken last year with the original iPhone in preparation for the eventual launch of the 3G version.

Is the future Orange?

The news source also states that Orange is looking to extend its iPhone offerings into the UK, as it already stocks Apple's favourite touchscreen in 27 countries, although its not yet known if this is possible as O2 has a multi-year exclusivity deal on the device.

Rumours are starting to grow at a similar pace to last year over a new iteration of the iPhone, but the debate still rages over whether this will be a new high-cost device to stave off the threat of the Palm Pre or the much-speculated iPhone Nano, with a lower price point and a new consumer base to aim at.

Apple is set to release details of the iPhone 3.0 firmware tomorrow, and depending on the eventual release date, this could give clues as to what the next iteration of the iPhone hardware will look like.

Via Mobile Today