O2 seems ready to sell cheaper iPhones this summer which only indicates that a third-generation iPhone will arrive. The 8GB iPhone 3G is currently being sold for free with £44.05 a month contracts while the 16GB version is free only with £73.41 a month contracts.

Starting this summer, the 8GB will be free with £35 a month contracts and the 16GB will be free on £45 tariffs. Will we see cheaper iPhones outside the UK too? If all goes well and Apple will launch a new iPhone this year then O2‘s initiative might be copied by others too. But don’t get all excited folks, these are all rumors for now.

via Pocket-lint

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