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New iPhone rumour: O2 definitely getting it

The question remains: who will get the coveted contract to sell the Apple iPhone in the UK?

One thing is for certain: Apple will be launching new products - most likely new Apple iPods - at its Apple Event tomorrow. But could an Apple iPhone announcement be on the way too?

Mobile Today suggests that an Apple iPhone announcement is imminent and that O2 has "taken the deal on the table from Apple" to make sure it gets the coveted contract, rather than main rival Vodafone.

The source quoted in the report, working for a major retailer, said about the Apple iPhone deal: "It is the world's worst kept secret that [O2] has the deal but it is a question of whether they take it out to the wider channels."

The report also states that Carphone Warehouse will open an Apple iPhone store on London's Oxford Street. The Apple iPhone is due for release in the UK and other European markets before Christmas so an announcement should be on the cards soon. Mobile Today reported that the launch could take place this month at The O2 venue in Greenwich.

Neither Apple nor O2 would comment.