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Despite a strong marketing campaign from Apple in the UK, sales of the iPhone suggest it has failed to impress customers across the UK.

The Financial Times reported that “people familiar with the situation” said that O2, the network operator exclusively carrying the iPhone, has sold 10,000 fewer iPhones than expected since its November 9th launch.

Analysts had expected to sell 200,000 of the devices as a conservative estimate.

A spokesman for O2 however said that “those figures did not come from us” and stated that despite the negative reports, “we continue however to be delighted with the device, which is fastest-selling device we have ever had”.

The high cost and long contract have been keep customers from signing new contracts, with the minimum cost for an iPhone and an 18-month contract at an amazing £269 plus £35 per month.

Apple’s much anticipated iPhone will go on sale in Britain tonight (November 9th) and sales will begin just after 18:00 GMT at 1,300 Apple, O2 and Carphone Warehouse stores - both on the high street and online.

Comprising a mobile phone, a widescreen iPod and an internet device, complete with multi-touch interface, the iPhone is bound to be a big hit, according to Apple. Costing £269, each iPhone comes with 8 GB of storage and will work with either a Mac or PC.

Each customer will be allowed to buy up to two iPhones on a first-come, first-served basis.

‘We can’t wait for our customers to get their hands on the iPhone this Friday night,’ said Ron Johnson, Apple’s retail vice president.

From February, third parties would be allowed to develop applications for the iPhone, although work still has to be done to tackle the problem of malware, viruses and privacy attacks, according to Apple.