O2 admits iPhone 4 stock is 'extremely limited'

O2's iPhone 4 stocks are limited

O2 has admitted that its stock of the iPhone 4 will be "extremely limited" in the UK, meaning that some customers will miss out if they want to buy the device on a contract.

The operator said in a note on its site that the iPhone 4 will be available only for existing O2 customers at launch.

"IPhone stock will be extremely limited in the UK at launch and not everybody who wants one will be able to get one straight away," the update noted.

"We want to make sure that our existing customers get priority so, until at least the end of July, only existing O2 customers will be able to get an iPhone 4 from us."

The company said that the device will be available in O2 stores, Carphone Warehouse, Best Buy, Phones4U and Apple stores, but will not be available on the o2.co.uk online shop "until at least the end of July".

The iPhone launch has not been plain sailing for O2, following widespread confusion greeting the announcement of its iPhone 4 tariffs.

The 16GB iPhone 4 will cost £209 on a £30 a month 18-month contract, but £279 on a £25 per month 24-month contract. This means that an 18-month contract on the lowest tariff works out at £749, while a 24-month contract is actually dearer at £879.

However, an O2 spokesman confirmed to V3.co.uk that the prices are correct, and that the operator offers a range of tariffs and that people should pick the one that suits them best.