British designer Stuart Hughes is offering a £5 million ($8 million) Apple iPhone 4 adorned with 500 individual flawless cut diamonds totalling 100 carats. 

Hughes 'pimped' the Apple handset for an Australian businessman. "It was a fantastic challenge and I am really pleased with the end result - the phones look superb," the Liverpool designer said.

"Phones are so popular at the moment, and this is the ultimate design for one. It was a very exciting project. The diamonds are rare and difficult to source. Stones like that usually have a very long history."

Highes said it was "amazing" that someone is prepared to spend £5m on a phone.

"I doubt it will get used because it is worth so much money," he said. "It would be a disaster if it was ever lost."

The £5m iPhone comes well protected in a granite presentation block. Only two of the handsets will ever be made.