US retail giant Walmart has slashed the contract cost of the iPhone 3G S, suggesting that a UK price cut could be on the way too.
The price has dropped from about £135 down to £67.50 for the 16GB version of the 3G S when buyers sign up for a two-year contract.
The news is also the most significant indication yet that Apple is gearing up for the launch of the next generation iPhone, according to industry analysts.
Assuming that the iPhone 4G is announced at Apple's World Wide Developers Conference (WWDC) early next month, it is believed that the current iPhone 3G S will become the base model in its mobile phone range, with the 3G version being put out to pasture.
The most significant reason for Apple's removal of the iPhone 3G from its product line-up is that it will not be able to support multitasking, which is a key inclusion in the new version of the iPhone operating system.
This is compounded by the fact that its two megapixel camera looks rather ancient in comparison with current mainstream competitors.
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