O2, which is the only iPhone network provider in the UK, has reduced the retail price of the standard iPhone unit by £100 in an effort to attract new customers. But a research firm believes sales of the iPhone have slowed down significantly in all the European markets, prompting the network carrier to decrease its price.

An O2 spokesman said the iPhone has been very successful and the price cut will surely further increase the figures. The offer will be available to all iPhone users irrespective of what price plan they choose.

The offer for the Apple 8GB model is for a limited period only until 1 June, and the price of the more advanced 16GB handset remains unchanged at £329.

But research firm CCS Insight said iPhone sales have slowed significantly in all the European markets where it is available and Apple will need to overcome it to reach its target of selling 10 million iPhones by the end of 2008.          (more…)