UK goes wild over iPhone price cut

An 8GB iPhone now costs £169 ($334) in the UK, while the 16GB version costs £329 ($649)--but many O2 and Carphone Warehouse outlets have now sold out of both.

O2's website notes the 8GB iPhone is 'not currently available' but reminds customers they can still shell out for the 16GB version, which has never been discounted.

The mobile operator, which won the race to sell Apple's iPhone in Blighty, said it does still have stock of both iPhones in some of its retail stores, though it added availability of the 8GB device is "limited."

Meanwhile, Carphone Warehouse--the only other retail outlet for the iPhone in the UK--confirmed it has sold out of 8GB and 16GB iPhones in its high street shops. Its online store also lists both versions out of stock.

O2 said in a statement: "We have been delighted with the response to our iPhone price promotion which has surpassed our expectations. Due to this success we are currently out of stock of the 8GB iPhone on our online shop. We still have 8GB and 16GB iPhones in O2 stores although availability of the 8GB device is now limited."

It added: "We are currently reviewing the situation with regard to stock."

Earlier this year O2 tweaked the iPhone tariffs to apparently make them 'simpler', and boosted the number of texts and voice minutes on the cheapest plan.

A 3G version of the iPhone is widely rumored to launch this summer.

In separate news, Ofcom has announced O2 has now met the obligations of its 3G license to achieve 80 per cent coverage of the UK population. Back in February, the regulator threatened to shave months off O2's license if it didn't achieve 80 per cent coverage by June 30.

Ofcom added it will conduct a further assessment to ensure all 3G licensees remain in compliance on December 31, 2008.