Updated Apple is about to unleash the much-anticipated 16GB version of the iPhone across the UK today. Rumours bounding around today have been confirmed and it will go on sale in all UK O2 stores nationwide from 1.30pm.

Many have speculated that it was only a matter of time before Apple increased the memory capacity of the iPhone especially as the similarly-styled iPod touch is available as a 16GB model.

Apple 16GB iPhone: it was only a matter of time

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The 16GB version, to be priced at £329, would double the memory capacity of the current iPhone, which costs £269.

Update The new 16GB iPhone will cost $499 / £329, joining the 8GB model costing $399 / £269. Still no sign of 3G though.

The iPod touch now comes in a 32GB model for $499 / £329, joining the 16GB model costing $399 / £269 and the 8GB model shipping for $299 / £199.

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