O2 will launch iPhone 4, a thinner and higher resolution version of the smartphone, on June 24.

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The retailer is also offering limited time special upgrade offer for O2 customers to make it easy for existing customers to get the new iPhone. Further details will be announced in the coming days.

Apple also announced yesterday it will launch iAd, its in-app advertising system that aims to dominate the mobile advertising market in the same way Google has dominated desktop computing with its advertising platform.

O2 and Carphone Warehouse had the exclusive rights to the first-generation iPhone in the UK when it went on sale on July 11 2008.

In addition to O2, Orange, Vodafone and T-Mobile have also announced they will be selling the iPhone 4.