Here we go again! Swiss luxury designer and jeweler Knalihs Athem’s newest creation is a diamond encrusted Apple Iphone 3G.

We had already the De Vere Olympic iPhone 3G caked with 88 diamonds and Goldstriker’s Gold & Diamond 3G iPhone versions, but, according to the press release, that should be the world’s first REAL diamond encrusted Iphone 3G. “Although some claim to have created a diamond encrusted iphone 3G, they are just photos of the old iphone redone in Photoshop”

This exclusive limited edition phone is encrusted with more that 475 finest quality brilliant cut diamonds that weigh 3.75 carats in total. Only 50 such handsets will be created worldwide. Each handset is accompanied by appropriate and official diamond grading report from a gemological lab.

The first 10 diamond encrusted Apple Iphone 3G by Knalihs Athem will be sold for ONLY US$10,000 post which the price will be revised sharply upwards. (Thanks Sam)