Apple's not-yet available iPhone 2.0 software has already been cracked - before it even ships, at least that's what a renegade group of developers claimed last night.

The iPhone Dev Team claim to have cracked the software, meaning yet more pressure on Apple in the cat and mouse game between software developers and the owners of a million unlocked iPhones and the company and its network partners.

The developers claim to have decrypted and jailbroken the new iPhone software, and have published a series of screenshots of third party applications running on the device.

The jailbreak currently only works with hacked activation, meaning it won't work with AT&T iPhone's yet.

Apple executives have characterised the buoyant global market in unlocked iPhones as a positive thing, suggesting strong pent-up demand for the product, which is as yet available in just four markets; US, UK, Germany and France.