Electricpig has the inside scoop, with the mobile network planning to give the 8GB model away on their £35 tariff, down from £100. Pay £45 a month for the 16GB version and it'll be yours for nowt too.
Last year O2 cut the price of the original iPhone by £100 to £170, sparking a major spike in sales ahead of the iPhone 3G announcement. Don't be surprised to see the same thing happen again.
All talk points to a new iPhone, possibly an iPhone nano, coming in June, a year since the previous announcement. Will you buy an iPhone 3G if it gets cheaper? Tell us in the comments section.
Price: £Free on contract
On sale: Now