Apple's PAYG iPhone on sale now

Apple's pay-as-you-go iPhone hits the shops today, but even for Apple fans at £350 it's quite a lot of money to shell out.

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The 3G phone is now on sale at O2 and Carphone Warehouse stores.

The handset, which includes the hugely popular iPod music player, also offers unlimited browsing and Wi-Fi for the first 12 months in the UK for PAYG customers.

The 8GB handset costs £350 with the 16GB model selling for £400.

Last week Apple boss Steve Jobs launched a new range of iPod Nanos as well as an updated version of its music service, iTunes 8.

However O2's decision to sell the PAYG handsets didn't set the Web User forums on fire.

"I keep hoping to win one of them. Just for the fact I can then go and sell it on eBay. I get a few hundred quid and the buyer gets a bargain. Would I go out and buy one? No," wrote andrew1971.

www.o2.co.uk/iphone/paygo