An iPhone encrusted with 6.5 carats of high-quality diamonds, all individually set, has been launched at a whopping price of 12,995 pounds.

Bling specialist, Stuart Hughes, from Liverpool, devised the eye-catching iPhone 4 Diamond Edition that has an attractive solid platinum and diamond Apple logo on its backside.

The report said, "Combining the splendid design of the iPhone 4, with the magical radiance of diamonds, has created an exquisite work of art."

"There is no finer, purer, or rarer gem than the diamond," he added.

The handset is a 32GB model and comes unlocked for universal use.

The phone also included a luxurious hand-finished wallet made from Ostrich leather. (With Inputs from Agencies)