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Apple to slash cost of 8GB iPhone?

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Apple to slash cost of 8GB iPhone?

The 8GB version of the iPhone could soon be on sale for half its current price, analysts have forecast.

According to finance experts polled by US news provider the Globe and Mail, Apple could be about to cut the cost of the phone to $99 (£62) in a bid to broaden the appeal of its handset range to lower income customers.

It is also thought that a price cut would help sustain demand for the less powerful Apple phone amid the launch of new rival handsets such as the Palm Pre and the Nokia N97.

The predictions raise the possibility that the 8GB edition of the phone could also be due to fall in price in the UK, where demand is believed to have been limited recently by the lengthy contract deals on offer with O2.

Morgan Stanley analyst Karen Huberty told the newspaper: "We expect a price cut to the current generation iPhone to drive 50 per cent to 100 per cent incremental unit demand.”

News of developments comes as Apple is expected to confirm the existence of the third generation iPhone within the next couple of months, with technology sites predicting that July 17th is the most likely date for an announcement.

Rumours suggest that the handset will be home to a 3.2 megapixel camera and will be equipped with 32GB of onboard memory.

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