iPhone 3GS Sales Surpass 1 Million Units

In the first three days of its launch, Apple (News - Alert), Inc. sold more than 1 million units of the iPhone 3GS, the company’s latest version of the mega-popular smartphone device.

 

The widely anticipated model hit stores June 19, drawing plenty of shoppers, but not the big crowds that supported iPhone’s (News - Alert) earlier releases, Reuters reported. The iPhone 3Gs offers faster speeds, longer battery life and offer video recording.

 

Beyond unit sales, the Cupertino, Calif.-based Apple also reported that 6 million customers downloaded the new iPhone 3.0 software in the first five days since its release.

 “Customers are voting and the iPhone is winning,” said Steve Jobs (News - Alert), Apple’s chief executive officer, in a statement. “With over 50,000 applications available from Apple’s revolutionary App Store, iPhone momentum is stronger than ever.”

 

Jobs, who has been on medical leave since January, is expected to return to work this month.

 

Surprisingly, sales for the next-generation iPhone are similar to those of last year. The device is being released in fewer countries, eight versus 21, according to a Dow Jones report. The phone's solid performance comes at a time when consumers are cutting back on their spending and shows the increasing popularity for smartphones , the report said.

 

Apple’s iPhone 3GS is emerging as the hot new device in a growing field of smartphones. The Palm Pre debuted on June 6. And already, the hot new device appears to be flying off the shelves. As TMCnet recently reported, the status of smartphones has changed from a nice-to-have gadget to a must-have necessity.

 

 Yet the iPhone offers users more than its competitors. For instance, Apple’s App Stores has more than 50,000 software programs, far more than other smartphone makers.

 

"The iPhone literally is a computer now,” Needham & Co. analyst Charles R. Wolf told Dow Jones. “It can make calls, but the other stuff it can do is truly amazing."

 

As TMC (News - Alert) President Rich Terani wrote, “From where I stand the App Store is still the biggest differentiator and RIM, Nokia, Microsoft (News - Alert), Palm and the rest need successful app stores to compete effectively with Apple.”

The iPhone 3GS is available for $199 and the iPhone 3G model sells for $99, TMCnet reported.

 

Some analysts, including Piper Jaffray’s Gene Munster, had predicted that Apple would sell half a million units in three days time, according to the Associated Press.

 

While iPhone sales were plentiful, the latest launch was still problematic for some. Some customers who tried to activate the phone at home received messages that the process could take 48 hours to complete, the AP said. So customers received e-mails on Sunday offer a $30 credit at Apple's iTunes store as compensation, the report said.

Edited by Michael Dinan