Apple doubles iPhone storage

Apple has upgraded the storage capacity on its mobile handset, the iPhone.

Previously only available in an 8GB model costing £269, the iPhone now comes with a capacity of 16GB, at a cost of £329.

The new model also comes preloaded with the iPhone's latest firmware updates, which bring enhanced features, such as the Maps application.

The 16GB iPhone is available immediately on O2 contracts. The operator cut its iPhone tariffs last week in order to bring them in line with its tariffs for other phones.

However, there is still no word yet as to when O2 will introduce business tariffs for the iPhone — something AT&T has already done in the US. O2 has said it will do this later in 2008, but has so far refused to specify further. It also continues to refuse to disclose how many iPhones have been sold in the UK since the device was launched in November.