The iPhone has broken the one million barrier in UK sales according to data for 2008 released by O2 this week.

O2 has the exclusive right to sell the iPhone in the UK and has been selling the model since late 2007.

The iPhone sales have helped O2 to a ten per cent increase in revenue in the last year and the company now says it has a customer base of nearly 22 million in the UK.

Matthew Key, chairman and chief executive of Telefónica Europe, O2's parent company, explicitly cited high-end products like the iPhone and Blackberry as a reason behind the success of the firm.

But despite the good performance in 2008, Mr Key was only cautiously optimistic for the future as he said that while the company's results were bucking the global economic trend, he remained concerned about the shrinking market.

And not everyone is expecting the iPhone to continue its present success either.

Microsoft's chief executive officer Steve Ballmar this week told industry analysts: "The real market momentum with operators and the real market momentum with device manufacturers seems to primarily be with Windows Mobile and Android." ADNFCR-1220-ID-19050105-ADNFCR
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