Mobile reports that UK carrier O2 is planning to cut prices on the iPhone in May ahead of an expected summer revamp of the device.
The 3G iPhone will be free on its 35 and 45 per month tariffs from May. The 16GB version is currently only free on the 75 per month contract, while the 8GB handset is free only on the 75 and 45 per month deals.
Customers currently spend between 59 and 159 for an iPhone on the 35 and 45 monthly tariffs.
Mobile believes that the summer revamp will come in June, or more likely July, of this year, which fits with Phil Schiller's previous comments on Apple product cycles. Apple's recent announcement of a March 17th media event also is suggestive of last year's pattern of a March media event followed by a June announcement and a July launch.