We had already seen some iPhone price cuts overseas for what many felt was to help clear out the non-3G inventory of phones in Europe, but now it appears that O2 has complete run out of stock with the 8GB and 16GB iPhones. We’ve still seen no official word on the release date, price or specs of a 3G iPhone but we can’t imagine it could be far off now that the inventory in the UK is depleted.

O2

Amidst announcements of a number of new iPod products and product upgrades, Apple made a surprising move today by cutting the price of its iPhone, likely much to the dismay of early adopters. Apple is now selling the larger 8GB version of its iPhone for $399 which is down $200 from the original $599 price only a couple months after the products initial launch.

Apple also said it is going to discontinue the 4GB model of the iPhone altogether, now selling it at $299 until the supplies run out.

According to ZuneScene they have an inside source at Microsoft who has confirmed that there is a new Zune coming our way with a code name of “Draco”. The new Zune will not be marketed under this name which in our opinion helps keep this rumor flexible, but they do have some specs.

According to the leak, the Draco Zune will come with flash memory of 4GB or 8GB, will have video playback and Wi-Fi connectivity and is expected to be available for the coming holiday season.

via Gadgetell