In these tough economic times, with the recession biting and employment figures being slashed across the country, what better time to release a new mobile phone with a price tag of £1.6 million? It may sound unbelievable (and unbelievably tactless), but this is exactly what has just happened.

Peter Aloisson is the man who has brought the very special version of the iPhone 3G to the market. A jeweller from Austria, he has a history of controversy after making it his hobby to produce diamond-encrusted phones.

1998 saw the release of his first design, and last year he also hit the headlines with his $1.3 million diamond-encrusted smart phone for JSC Ancort, a Russian encryption company.

This very special version of the iPhone includes 138 cut diamonds set into a line of white gold which runs around the outside of the phone. It is named the ‘King’s Button’ in reference to the most amazing feature of the phone – a 6.6-carat diamond in the place of the ‘Home’ button.

So is anyone going to buy it? The sad fact is that, yes, someone probably will. There is a category known as the ‘super rich’ who seem to be immune to those pesky recessions, and it will certainly prove a talking point at social gatherings.

The question of whether it is particularly tactful or indeed morally questionable to be walking around with a £1.6 million mobile phone is a different matter. Especially for those of us who still find the normal iPhone just a little bit out of our price range!