Retailers are to cut the price of the Apple iPhone by more than a third just five months after its much-anticipated launch.
The Carphone Warehouse and mobile phone operator O2 said they would sell the 8GB iPhone for £169 from Wednesday until June 1, £100 less than the original price of £269.
The newer 16GB version would continue to sell for £329. Apple stores will continue to sell the 8GB phone for £269.
An Apple spokeswoman said: "This is an O2 promotion and our prices will remain the same."
The Carphone Warehouse said it would reimburse customers who bought the 8GB phone within the past 30 days with a £100 voucher.
An O2 spokeswoman said: "The offer is available from (Wednesday) on all O2 iPhone tariffs and will create additional momentum for what has been O2's fastest-selling device."
O2, the iPhone's only UK network operator, would continue to offer three monthly tariffs of £35, £45 or £75.
Carphone Warehouse chief executive Andrew Harrison said: "The iPhone has changed the landscape and we're delighted that we can lower its price and broaden its appeal."
In September, Apple cut the price of 8GB iPhones in the US by 200 dollars (£99) to 399 dollars.
The gadgets went on sale in the UK on November 9.