Carphone Warehouse and O2 cut the price for the basic iPhone in Britain by 100 pounds ($197). The 8 gigabyte iPhone will be sold for 169 pounds until June 1. The 16 GB iPhone price will not be lowered and sells for 329 pounds. Sales of the iPhone have slowed in Britain since its launch and this move may have been made to clear inventory of the 8GB model to make room for the next model upgrade. Apple is expected to launch a third-generation high-speed version of its popular phone later this year.

“More and more this is starting to look like they want to clear stock of an older model, with a looming revision to the iPhone which will likely include 3G,” CCS Insight analyst Ben Wood told Reuters.

“But also we think the iPhone has slowed down during the first quarter and we think this (a 3G launch) should give sales a bit of a lift.”