When the iPhone was relased in the United States, thousands of people camped outside their local AT&T to get there hands on the latest gadget. In the United Kingdom, the reception wasn’t so good, as the large price put people off. O2, the authorised provider for the iPhone in the United Kingdom, have been struggling to free the shelves of iPhones after the high price for the handset and the month payments of up to £75 made the public loose interest almost instantly.

O2 is now updating their iPhone mini-site to inform about the new iPhone, coming July 11. They are inventing new tarrifs of £30, around $60, a month, and £99 for the handset of 8GB. The 16GB phone is free on the £75 contract. So the price has rapidly dropped from £269 to £99.

So, what are your thoughts on iPhone 2.0? If you don’t already have one, is it going to convience you to go out and get one. The top result on YouTube for iPhone 2.0 claims that Apple knows customers will go out and by new products even if they have the previous version. Do you believe this? Will this make people go out and by a new iPhone 3G. Will quality be compromised because of the dropping price? Let me know your thoughts by hitting the usual button.