Today we have some breaking news for you in our Credit Crunch Christmas gift guide.

Our suggestion this Monday is the UK's first ever mobile phone for under £3, courtesy of the Carphone Warehouse.

The Motorola W180 - on sale for £2.88 - is being offered on the back of the success of the Samsung B130 Black, that, with its £5 price tag, sold tens of thousands.

The sub-£3 Motorola W180 has colour screen and boasts an easy to use menu. It also has an FM radio as well as Motorola's CrystalTalk technology which is supposed to enhance the sound of the caller's voice.

More to the point however is that price, clearly a great gift for any youngster's first phone, although basic, it ticks all the right boxes in that it allows them to stay in touch with friends and family via calls or text.

Alternatively, if you have older relations who don't need the bells and whistles that the average contract phone offers, this could be just the gift for them.

The phone is available from the Carphone Warehouse for just £2.88 when you buy £10 worth of airtime, which being Pay As You Go handset, you would no doubt want anyway.

Click the link below to the Carphone Warehouse website for the full details.