Pent-up demand for the iPhone 3G is manifesting itself on auction site eBay, where eager buyers are bidding in excess of US$1,000 to get what’s turning out to be a hot commodity.

The demand for the iPhone remains high even off the Internet, with lines forming Monday outside an Apple store in New York to buy the limited stock of the devices.

Launched on July 11, the phone sold more than 1 million units worldwide over the first weekend, according to analysts. The demand has continued with carriers, including AT&T in the U.S. and O2 in the U.K., reporting iPhone 3G shortages. The 16G-byte iPhone is priced at $299 in the U.S., with the 8G-byte version priced at $199. In some countries carriers are giving the iPhone for free with contracts.

The bidding for a 16G-byte iPhone 3G on eBay is exceeding $1,000, with one bid ending at $2,325. The average 8G-byte iPhone 3G bid is reaching the $800 to $900 range.

In one auction a potential bidder asked if the iPhone could be shipped to Indonesia, indicating that bids were coming from countries where the iPhone won’t be shipped by the end of this year. The phone is currently sold in 20 countries, but Apple hopes to expand its availability to 70 countries by year-end.

The sellers are advertising the iPhones as “unlocked” to work with any carrier, also providing a link to a recent hack issued to unlock the iPhone.

Apple did not supply enough devices at this year’s launch, creating a demand. During last year’s launch of the first-generation iPhone the company sold 270,000 handsets.

Supplies should normalize over the quarter and the iPhone 3G is set for long-term success, said Mike Abramsky, of RBC Capital Markets, in a report. The company could ship up to 5.1 million iPhones in the quarter.

SOURCE: PCWorld.com

Fewer iPhones to be produced after missed targets on original…

O2 is bracing itself for stock shortages on the upcoming 3G iPhone, with senior executives frustrated that the operator won’t be able to make the most of demand for the new phone.

Apple has reduced the production order for the 3G version of the iPhone compared with the original due to the over supply of the 2G version, which failed to meet targets.

It has left O2 frustrated with Apple after the operator was buoyed by the introduction of subsidy on the 3G iPhone.

O2 believes the introduction of subsidy on the iPhone will attract far more customers than the original, which sold at the full price of £269.

One senior O2 source said: ‘We have to re-evaluate things a bit now. We’re expecting subsidy to make a big hit with the mass market, so we’re a little concerned with the supply.’

The operator is also understood to have set targets to dominate the high-end of the contract market for the second half of the year as a result of the 3G iPhone.

Senior O2 sources indicated that the operator had ‘been surprised’ by the early global release date of the 3G iPhone (11 July), which has put the operator on the back foot.

The 3G iPhone will be available in 22 countries at launch, and 47 in the following weeks. In contrast, O2 UK was one of just six operators stocking the original iPhone.

A spokesman for O2 UK wouldn’t comment on the predicted shortages, but said: ‘We’re seeing phenomenal interest in the iPhone 3G and we predict heavy demand. We urge people to get in line early to make sure they have a good chance of getting one.’

A spokesman for Carphone Warehouse, the only other place to sell the iPhone in the UK, said: ‘We have secured a large order and if that should sell out quickly that will be good for us. Getting more will not be a problem.’

The 3G iPhone, which was unveiled by Steve Jobs (pictured) last month, will
go on sale in O2 and Carphone Warehouse stores from 7:02pm on 11 July, and the 8GB version will be free on contracts over £45 per month.

SOURCE: mobiletoday.co.uk