iPhone 3G Could Arrive Earlier Than Expected

By: John Lester
Staff Writer
Published: Apr 3, 2008

Inventory for the iPhone is prompting 3G speculations as stock for the device is running low at Apple retail stores, suggesting that the company may be unveiling its newer model soon.

In past experiences, Apple begins to thin inventory before a new product launch. As a result, the growing shortage of iPhone supplies at Apple Stores could mean that the device will be replaced.

However, AT&T stores in the US and retail outlets in other countries where the smartphone is available are not short on supply. In addition to that, the FCC hasn't approved a new version of the iPhone. FCC approval is mandatory, and generally occurs up to two months before new phones are available for sale. It is notable, however, that occasionally the FCC approves phones immediately before launch.

Apple wants to meet an initial order of 11 million cell phones to be built this year. This means they want to sell as many as they can.

However, other analysts familiar with Apple's order patterns say pending production reports are typically overestimated by the company, largely to keep component suppliers fully stocked should increase demand skyrocket. Apple will probably make about half of the 11 million iPhones the initial production plan calls for. It will probably have about one million phones ready at launch and 4 to 5 million to follow later this year, according to one analyst.

The new phone will operate on AT&T's faster network offering faster speeds to mobile Internet users and will include more features including GPS navigation. While the price is still in question, some analysts predict a high price, as much as $500 per unit.