O2 has sold over two million iPhones to UK customers since it first launched the device exclusively on its network back in 2007, it has announced.

Although Orange and Vodafone have gone on to stock the iPhone in recent months, O2 says that its own brand has become intrinsically linked with the iPhone thanks to the initial period of exclusivity.

O2's UK head Ronan Dunne added that his firm was able to finish 2009 in good shape thanks to the iPhone, but added that the arrival of the Palm Pre also helped to boost sales and expand the smartphone portfolio offered by the network.

The popularity of its handsets helped O2 to be the sole UK operator to post figures showing that it grew last year and its customer retention abilities are also unmatched in the current market.

Mr Dunne announced that small business owners were now taking a greater interest in mobile communication and as such the prospects for the year ahead were looking good despite the caution with which many are still regarding the economy.