On the back of O2 parent company Telefonica Europe reporting record sales and a very strong performance from their UK brand comes the news that O2 has shifted over a million iPhones since the launch last year, and it was achieved before Christmas meaning it took less than 6 months.

There is no doubt that the iPhone has become a huge success in the UK despite being limited to only one carrier, O2, and coming with a fairly hefty contract price of +£40 to get the iPhone handset for free. One question that we have explored in an earlier article is how long will O2 have the sole rights to the iPhone in the UK, following news that a second scandinavian carrier gets iPhone contract.

One can not devalue that 1 million iPhones sold is pretty impressive, but it is still lacking in sales based on carrier market share compared to some other countries, including the US (source: arstechnica). Yes, competition is quite strong in the UK mobile phone market, and it did not take long for competitors such as the android based G1 and RIM Blackberry to follow in the footsteps of Apple iPhone, so in light of high price contracts and competitor offers, one million iPhones sold is perhaps a really good number.

O2 also reports that the iPhone has helped secure more contract customers compared to customers on PAYG (pay as you go) deals, meaning a more secure and predictable income stream for the company.

With the rumors of the next generation iPhone already being on its way, i’m sure O2 is already hoping for another exclusive deal to recruit more new customers as well as retaining the ones that are already on the iPhone 3G as competition in the smartphone market continue to increase.

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