O2 has officially confirmed its anticipated £100 discount on the 8GB iPhone, offering the device for just £169 until 1 June 2008.

The move matches a discount recently initiated by Apple's German network partner, T-Mobile, but the discount isn't being applied on sales of the 16GB iPhone, which continues to cost £329.

The offer is available from today on all O2 iPhone tariffs and is designed (according to O2) to add momentum to what it calls its "fastest-selling device".

O2 notes that iPhone users are among its most satisfied customers and declared the aim of the deal is to "bring its benefits to an even greater number of customers."

"The iPhone has also been hugely successful in attracting new high value customers to O2 who are also more likely to recommend O2 to their friends and family. 60 per cent of iPhone customers are new to O2 while iPhone customers spend on average 30 per cent more than other Pay Monthly customers," O2 explained.

The move also comes as expectation continues to build that Apple will introduce a second generation iPhone that supports the fast 3G wireless standard, perhaps as soon as June. The move also seem designed to clear stock of the existing 8GB model, possibly indicating higher capacity models are on the road map. O2 explains its offer to be "subject to stock availability."