The new price cut of GBP 100 (valid as of today) actually makes the European version of the iPhone less expensive than the US counterpart - the price tag pf GBP 169 translates into something roughly around $330, while the US 8GB version still costs $399 before taxes.
The price drop actually makes us wonder whether O2 UK is having problems with selling their legit iPhones. Nevertheless, it's not sure whether this step will tame the black market of unlocked iPhones imported from the USA. After all, to get an O2 iPhone you have to sign a long-term contract with O2.
While the iPhone 8GB gets its numbers slashed, the price of the 16GB iPhone version remains unchanged at GBP 329.
This move from O2 opens doors to even more rumors about the expected announcement of a 3G iPhone in June 2008. The new 3G iPhone is rumored to even boast a 32GB version. We are yet to see about that though.