New iPhone tariffs launched last weekend (3 April), which made the handset free on £35 and £45 per month contracts, failed to provide the sales boost that many had hoped.

Retail staff at O2 blamed the long 24 month contracts for not generating the spike in iPhone sales.

The 8GB version became free on £35 per month contracts last weekend, but only on two year agreements. The phone originally cost £100 on £35 per month contracts and was previously only free on a £75 per month deal.

One O2 staffer said: ‘24 months is not an attractive [enough] offer, people have not been interested.’

O2 is looking for a boost in iPhone sales ahead of its deal with Apple coming under review in July.