The 16GB model has seen a similar reduction too, costing £200, rather than £280. That's a ridiculously good price for such a great phone.
For your money you'll be getting a 4.7-inch phone with a crisp 720p display, a powerful quad-core processor and cool software extras like the photo sphere camera. The phone waltzed its way to earning a much coveted Editor's Choice award in our review.
It's not clear why Google has knocked so much off the already low price, particularly as it hasn't given the Nexus 10 tablet a similar discount. Retailers often discount products ahead of a new model launch, so it's possible we might be seeing a new Nexus phone on the way.
Even at full price the Nexus 4 is a superb bit of kit, outperforming most phones of a similar price. At this price, it really has no rivals -- it's simply the best phone you can get for the money. At the time of writing, the Google Play store gives a 1-2 day delivery time, but that might change if demand gets too high.
It's possible too that Google has limited stock of the phone. When it first launched there were severe stock delays forcing excited phone fans to wait well over a month to snag their new handset. Get your orders in now if you're keen.
Are you going to buy a Nexus? Have you just bought one and are miffed at the price drop? Let me know in the comments below or over on our Facebook page.