O2 Sells 1m iPhones, Outperforms UK Rivals

UK Mobile phone network O2 has sold more than one million iPhones in UK over the 14 months since Apple agreed to let the Telefonica-owned company sell the iPhone exclusively.

The news come as O2 revealed another strong quarter with a 10.6 percent rise in annual sales; this is even more extraordinary given the fact that O2 UK sales in the last quarter, during which the recession bite hardest, were more than 10 percent than the previous one.

Revenues at O2 were boosted partly by its landline and mobile broadband push as well as the iPhone exclusivity deal. The company also pointed out the growth of its pay as you go offers, where O2 has been offering its "Simplicity" deals and the iPhone on PAYG at £342.33.

O2 snapped 390.000 new users in the last quarter of 2008, which brought its total number of UK users to 19.5 million, strengthening its position as UK's number one network. It also sold more than 270,000 mobile broadband connections bringing its total broadband customer base - landline and mobile - to nearly 341,000.

As an MVNO, it added an additional 109,000, bringing its customer base to nearly 22 million thanks to the like of Tesco Mobile and represents almost half the total customer base of the company in Europe.

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Its parent company, Telefónica Europe, grew by nearly 6 percent year on year to roughly £3.8 billion. The monthly average revenue per user (ARPU) rose to Eur 30 in 2008 with Data ARPU shot up by 9 percent to Eur 10.3.

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