O2 this afternoon confirmed its new discounted price tag on the 8GB model iPhone.

The news follows a similar price cut earlier this month by Apple's Germany iPhone partner, T-Mobile.

As predicted by 9 to 5 Mac in February, when we reported plans to cut prices on the device "perhaps as late as mid-April". O2 has applied a £100 discount on the 8GB model of the iPhone.

In a press release the network announced the 8GB iPhone deal, which can now be purchased for just £169 until 1 June 2008. The offer is available from tomorrow on all O2 iPhone tariffs and will create "additional momentum for what has been O2’s fastest-selling device," the company said. The 16GB iPhone remains priced at £329.

"With the highest customer satisfaction of any device on O2 and unparalleled mobile Web access, the iPhone offers the best mobile experience in the market. Through introducing this special offer, O2 aims to expand the iPhone’s reach, bringing its benefits to an even greater number of customers," the company explained.

O2 also confirmed some interesting statistics regarding its iPhone customers, saying the device has been, "hugely successful in attracting new high value customers to O2 who are also more likely to recommend O2 to their friends and family. 60 per cent of iPhone customers are new to O2 while iPhone customers spend on average 30 per cent more than other Pay Monthly customers."

Signs that the 8GB model will eventually be made obsolete are clear in the small print to the deal, with O2 explaining: "The special offer is subject to stock availability."

The discount comes as reports suggest Apple is moving to introduce a new model of the device, introducing 3G support.

O2 improved its iPhone tariffs in February, increasing the text and minutes included in the £35 per month tariff in an attempt to boost sales of the device.