O2 has cut the cost of the 8GB Apple iPhone by £100. The promotion runs to June 1.
The 8GB iPhone has been priced at £269 since launch in November last year. The £169 offer is available on all three iPhone tariffs. O2 said the promotion will boost sales of its fastest ever selling handset.
The 16GB iPhone is still available at £329.
O2 said: "The special offer will make the iPhone an unbeatable proposition in the market, helping O2 to further gain market share."