Engadget was reporting last week that UK O2's website featured a notice saying that both of Apple's currently available iPhone models, the 8GB iPhone and the 16GB iPhone, were no longer available for purchase in the respective territory. Sources are now confirming that O2 has filled its shelves with 16 gig handsets. However, the 8GB iPhone is still out of stock.

The 16GB model is an earlier release of Apple's iPhone so, naturally, this is making it highly improbable for Apple or O2 to give up on the high-end model, even if the 3G SKU is due out as soon as next month, if we're lucky.

Apple would certainly make sure O2 UK is getting all the iPhones it can sell. So what's going on? And, while the news that O2 had posted a notice saying it had no more 8GB and 16GB iPhones in stock, as far as UK was concerned, no reason whatsoever was even hinted at. Probably 'cause everyone was waiting for this update.

However, the news did confirm earlier reports that O2 was planning to kill the 8GB iPhone. They didn't say anything about the 16 giger though. Plus, everyone (including analysts) trusts Apple to launch the next-gen version of its handset at the World Wide Developers Conference (WWDC) in June this year. There was really no reason to believe Apple had changed its mind.

Apple launched the 16GB iPhone in February this year, along with an upgraded version of its multimedia combo device, the iPod touch. The two devices shipped with the latest firmware update, which included the new maps application and the ability to watch movies from the iTunes movie rental service.

While the new iPod touch, featuring an enhanced 32GB storage capacity, was available only through the Apple Store, the new 16GB iPhone was available both through Apple Store and AT&T Inc.'s online and retail stores.