Consumer interest in the 3G iPhone is almost four times more than interest in its 2G predecessor, according to O2, Apple’s exclusive UK network partner for the device.

More than 130,000 people have pre-registered their interest in the combined handset, digital music player and web browser on O2’s website since the phone was unveiled a week ago.

Only 35,000 people pre-registered their interest in the previous phone between its unveiling on September 18 last year and November 9, when it went on sale in the UK.

Many consumers were put off by the £269 initial price for the first iPhone, so Apple has allowed O2 to heavily subsidise the new handset for contract customers, giving it away free on some contracts when it goes on sale on July 11.

Ronan Dunne, O2 UK chief executive, said the price of the original phone had been "an issue for some segments of the market", but added that iPhone customers were spending 30pc more a year on their mobile bills on average.

I have to say this is no surprise to me at all. The cost of the handset as well as an 18 month contract was always a strange business model in the UK. Now that the iPhone is standard with normal mobile phone buying practices in the UK and with the addition of 3G its now a very attractive purchase.

Main article via The Telegraph