O2 today announced that they would be cutting the price of the iPhone by £100 ($200) to £169 this week. The move comes shortly after German iPhone provider T-Mobile cut the handset price to a mere 99 Euros, thats around £70 or $140 to you or me.

The Reasoning begind this is as yet undecided. Some people say it is due to an imminent release of a 3G version of the iPhone, others think it may be due to Nokias announcement that they soon will be replacing an iPhone killing device (Currently only known as Project Tube or Nokia Tube.

Either way Apple and O2 are currently keeping tight lipped about the price drops and the reason behind them, many believe that this is due to increase marketing campaign effectiveness and to avoid the issue of cost, with the iPhone costing significantly more in the Uk than other countries.

Eitherway you can expect to see many more people with the iPhone in the near future, with or without Nokias Tube Threat as an iPhone killer.