MacRumors.com

MobileToday reports that O2's £100 price drop on the iPhone last week successfully spurred sales. O2 stores in Newcastle, Birmingham, and London reportedly sold out on the day of the price cuts, while Carphone Warehouse stores noticed a sharp uptick in sales:

‘We usually sell one or two a day, but yesterday we sold about 20 – it was like launch day again.'

Customers are reassured that O2 expected more stock to be delivered this past weekend. Apple is said to be in talks with France Telecom to similarly drop the price of the iPhone in France, due to poor initial sales.

Earlier reports have claimed that the price cuts were put in place to clear inventory ahead of the expected 3G iPhone. An Italian report today pinpoints the 3G iPhone release in the next few weeks.