O2 offers iPhone 4 on pay-as-you-go

Apple appears to be producing enough iPhone 4 units to cope with demand

O2 has started shipping the iPhone 4 on pay-as-you-go, but the handset looks rather expensive when compared to other operators' prices.

Customers will have to fork out £595 for a 32GB model or £495 for the 16GB version. O2 is charging £25 more than Orange and Vodafone for both handsets and the operator was not able to specify any reason for this when questioned.

O2 will ship the device with a text and web SIM card. Customers will get a 500MB monthly data allowance, which can be added to via bolt-ons, a spokeswoman told V3.co.uk.

Customers who top up between £10 and £14 every 30 days will get 300 texts a month. This rises to 500 texts when up to £29 is topped up, and unlimited texts for £30 top-ups.

The iPhone 4 is available to anyone on pay-as-you-go, and full tariff prices can be found on its web site.

The launch follows O2's decision to allow new customers to buy the device on a contract from last week.

There is still no word on when Three and T-Mobile will make pay-as-you-go iPhone 4 handsets available, but it should not be too long before they follow suit.

People waiting for a white iPhone 4, meanwhile, may be able to get their hands on one in time for Christmas, after Orange claimed that it will be available later this year.