Apple iPhone owners interested in picking up an Apple iPhone 3G S on launch day, 19 June 2009 will have to cancel their outstanding contract with O2, by paying the full amount outstanding for every month still on the contract.

Following further conversations with O2 customer services, Macworld UK has now found that iPhone owners must cancel their contract with O2 prior to picking up the new phone.

It transpires that you won't be able to just walk into an O2 or Carphone Warehouse store and pay to cancel the contract and pick up your phone. "You have to cancel first by giving us 30 days notice." said the O2 customer service rep.

Although you have to give 30 days notice, you won't have to wait 30 days before picking up the new phone. "As long as you have cancelled your current contract" in advance "you will be able to go in to the store and pick up the new phone" on 19 June, said O2. "They will know in the store that you have cancelled your current contract".

O2 also confirmed the current plan to charge the full rate outstanding. In the case of a person who picked up an iPhone 3G on launch at the £35 per month tariff, they will have 7 months outstanding on the account. The cost to cancel is £245. This must be paid to O2 when you cancel the contract prior to picking up the new phone.

To discuss cancelling your contract with O2 in the UK you can call them from your iPhone on 2102.