O2 will price the 3G iPhone at £300 for the 8GB version, and £350 for 16GB,
Mobile believes.
The pricing has been set and now O2 is looking to pin down a date in October for a full launch of the pay-as-you-go product, which the company expects will be the most sought-after gift in the Christmas run-in.
The operator is confident it has sufficient stock in place, and will not be looking to extend distribution beyond its own stores, Apple stores and Carphone Warehouse shops.
It is also believed that O2 is working on developing a system to minimise box breaking - The 16GB iPhone is currently available on eBay for the around £500.
A new iPhone advertising campaign hints at the new price with the slogan: ‘You’ll love the new price.’