Carphone Warehouse has slashed more than a third off the price of Nokia's 5310 - first phone model with an unlimited music bundle, for which analysts blamed lacklustre demand.
Carphone and Nokia said the sharp price cut was part of normal price changes after the Christmas sales period, Reuters reports.
Carphone, the sole retailer of Nokia's pre-paid bundles in the UK, its only market so far, cut the price for the Nokia 5310 with music bundle to 82.18 pounds from 127.10 pounds as part of its wider sales campaign, a Carphone spokeswoman said.
The music industry had hoped Nokia's Comes with Music phones and music service, and similar packages from other hardware vendors, would help make up for falling CD sales and cut illegal downloads.