iPhone cracked by hackers

Details of the process remain speculative, with the hackers planning on selling the service. Having been released in the US in June, customers were required to commit to a two-year AT&T contract, or purchase the phone as a pay-as-you-go customer. By cracking the handsets code, the phone will effectively be able to be used on any network, meaning that people outside of the US will be able to operate the US-only phone.

Despite claims that Apple may still have time to modify their handsets in time for its European release - thus making them even more difficult to hack into - these latest developments may force UK networks that are busy negotiating with Apple for exclusive rights to the phone, to reconsider.

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