Mobile magazine is reporting, without quoting sources, that O2 is about to slash the cost of an iPhone in the UK to £169.

The £100 price cut is apparently due to be announced tomorrow (Wednesday) and follows T-Mobile's recent decision to reduce the price of the 8GB handset to 99 euros (dependent on tariff) in Germany.

Back in January, iPhone operator O2 brought the arguably over priced iPhone tariffs more in line with its other monthly contract offerings, increasing the amount of included minutes and texts.

This will fuel speculation, helped along by reports of iPhone shortages elsewhere, that Apple is planning to introduce the 3G iPhone sooner rather than later.

>> News - German iPhone price cut
>> News - O2 changes iPhone tariffs
>> Via - MobileToday