The world’s Most Expensive iPhone (July 29, 2009) — The world most expensive iPhone is an Apple iPhone 3G made of 18 carat gold and encrusted with diamonds. It was designed by Austrian jeweller Peter Aloisson and priced at $2517345 (£1.6m).

ipodeThe handset is surrounded by a white gold line encrusted with a total of 138 brilliant cut diamonds of the best quality. The most prominent feature of the “Kings button” phone is its home button that features a rare 6.6 carat diamond.

Mr Aloisson has a record of blurring the lines between gadget, art and jewellery.

The iPhone has capitalised on the success of the iconic iPod to become the most sought after of a new generation of smart phones.

However its competitors, including Microsoft’s Zune, Google’s G1 and Blackberry’s Storm are rapidly rolling out a new range of applications in a bid to close the gap.

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