Diamond encrusted iPhone

An Apple iPhone 3G made of 18 carat gold and encrusted with diamonds is laying claim to the title of the world's most expensive phone. It was coming wasn't it! Where there's gold, diamonds are sure to follow.

It's become a familiar pattern, as we saw most recently with an 18k gold Shuffle that was soon followed by a diamond encrusted version. So it was time to start an office pool after a 24k iPhone began making the rounds a few weeks ago.

In classically over-the-top fashion, the U.K. purveyor has adorned this limited edition with 420 diamonds totaling 5.65 carats set in 18k white or yellow gold, with a choice of white, black or pink sapphires. Decisions, decisions! With a price tag of $41,225 price, it laughs in the face of the credit crunch.

Designed by Austrian jeweller Peter Aloisson the customised iPhone is priced at £1.6 million. The handset is surrounded by a white gold line encrusted with a total of 138 brilliant cut diamonds of the best quality.

But the most prominent feature of the "Kings button" phone is its home button that features a rare 6.6 carat diamond.