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"Over time, three out of four customers of the iPhone will be new O2 customers, because you can only get the iPhone by becoming a customer of O2," claimed incoming chief executive Matthew Key.

Key declined to comment on how many of the handsets had been sold since its launch in November, but said that sales in the first few weeks have been in line with expectations.

O2 has previously claimed that it

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sold tens of thousands of the handsets in its first weekend.

Apple has been equally silent on UK and European iPhone sales numbers.

Orange has said that it sold 30,000 iPhones within days of the handset going on sale in France, contradicting early suggestions that demand was slack.

According to RBC Capital Markets analyst Mike Abramsky the iPhone has been doing much better than expected in Europe.

"Phone subscriptions in the UK, Germany, and France are all doing strong business and are outselling competitors smartphones, including the Nokia N95 and E-Series, Samsung BlackJack and LG Prada. More than 4 million iPhones should move off European shelves by the end of next year."

As a result, Abramsky has increased his iPhone sales projection to 12.5 million by the end of 2008, ahead of Apple's stated 10 million target.