Apple updates iPhone line with 16GB model

Apple has stealthily launched a 16GB iPhone and a 32GB iTouch. Both cost £329 and should be available for sale as from today, although only Apple's store seems to stock them at the time of writing.

Unfortunately for new iPhone buyers (and fortunately for the rest of the iPhone community), Apple has not updated the newest iPhone to work with 3G networks.

The prices of the other iTouch and iPhones remain the same; earlier last week, O2 announced that it would be offering more texts and calls for each tariff on its iPhones and is rumoured to be readying Business tariffs for the iPhone, a move that AT&T had already done in the US.

The iPhone has suffered from weak sales in Europe according to figures released by O2 earlier and until now, Apple has refused to cut the price of its iPhone to boost sales.