Apple pulls the plug on hacked iPhones

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Sites such as eBay have been selling the "unlocked" iPhones for several weeks. The phones have been modified by hackers to work in Britain, where the handset is yet to be officially released.

It is believed thousands of the modified handsets - which will work on any mobile phone network and not just those approved by Apple - have been sold across the world. Today the handsets were still being offered for sale on many websites.

However, last night Apple implemented a software update to the handsets, electronically disabling them. It is believed the company issued the update to protect its exclusive deals with mobile phone operators. For instance, in the US the company is believed to have a three-year deal with AT&T, while in Britain it has partnered O2.

In a statement the company said that modified mobiles could become "permanently inoperable" once Apple updates were installed.

It also said it would not repair or honour war ranties on unlocked handsets, saying: "Users who make unauthorised modifications to the software on their iPhone violate their iPhone software licence agreement and void their warranty."

At the launch of the iPhone in the UK, Apple boss Steve Jobs admitted that the firm was engaged in a "game of cat and mouse" with hackers.

The £269 iPhone is released in this country in November.