From today up until June 1, the UK division of Telefónica O2 will be offering a full GBP 100 (US$ 192.91) discount on the 8GB version of the Apple iPhone.

The promotion will be slashing O2's iPhone retail prices to just GBP 169 (US$ 336.16), a move which O2 believes will improve the sales of their "fastest-selling device." The price drop, similar to AT&T's previous one, does not cover the 16GB version of the iPhone and is strictly for the UK only as of press time.

Though O2 claims that the deal was made to "bring [the Apple iPhone's] benefits to an even greater number of customers," some people speculate that it's rather a move to clear stock on the earlier, 8GB iPhone. Now the reason why isn't exactly clear.

Speculations currently being thrown around are two-pronged. On one end, onlookers believe that the 16GB version will soon replace the 8GB version as the new standard iPhone package.

On the other, people believe that O2 is clearing up space to accommodate the long-rumored 3G revision of the iPhone, and this deal was an indication of just how close it is to release. We'll be keeping tabs on this, so keep your eyes glued to this space.