Macworld sources claim the device will cost £100 and be sold with an 18-month contract, but Apple's UK network partner may harbour deeper plans for the launch of the device. Including free upgrades, free phones for high-tariff users and pay-as-you-go deals.
MacWorld suggests that O2 may sell the iPhone in the UK on a pay-as-you-go basis. Buyers could obtain the phone contract free for the same price as original iPhone, £269.
Also rumoured is that the 3G iPhone will be offered for free to customers signing up for the most expensive tariff. Currently thats £75 per month with 3,000 minutes of calling and 500 texts.
Existing iPhone customers will be offered the chance to upgrade to the 3G iPhone without charge - though they will have to sign for another 18 month contract.