Apple Sells a Cool Million iPhone 3Gs Despite Opening Weekend Hitches

The weekend of July 11 was a good one for Apple: With the worldwide launch of the iPhone 3G on Friday, Apple (Nasdaq: AAPL) sold a cool 1 million 3G models around the world and served up 10 million iTunes App Store downloads, according to the company.

"iPhone 3G had a stunning opening weekend. It took 74 days to sell the first 1 million original iPhones, so the new iPhone 3G is clearly off to a great start around the world," noted Apple CEO Steve Jobs.

iPhone 3G is now available in 20 countries -- Australia, Austria, Belgium, Canada, Denmark, Finland, Germany, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK and the U.S. -- as well as Hong Kong. It will go on sale in France on July 17.

3 Big Upgrades

The iPhone 3G comes with three big upgrades and a handful of smaller tweaks. The first big upgrade is 3G, which lets it utilize AT&T's (NYSE: T) 3G cellular service network for Internet access approximately twice as quickly as the previous generation's EDGE-based access. The second is built-in GPS (global positioning system), and the third is iPhone 2.0 software, which includes support for Microsoft (Nasdaq: MSFT) Exchange ActiveSync -- critical for enterprise business use -- and now runs more than 800 third-party applications through the new Apple iTunes App Store.

The iPhone 3G is also now available with a white plastic case back in the 16 GB model, has improved audio and weighs a bit less than before.

In the United States, the cost of acquisition via AT&T's service dropped to US$199 for the 8 GB model and $299 for the 16 GB model, but the overall cost of service increased a minimum of $10 per month for the unlimited data plan, bringing the unlimited data requirement to $30 a month. Text messaging, which was previously bundled into the first-generation iPhone plan, is now an add-on or pay-per-use service.

What Were the US Sales?

Not everyone who wanted a new iPhone over the weekend was able to get one by walking into an Apple or AT&T store, however.

"Nearly all of our stores sold out on Friday, and we're now replenishing supplies," Mark Siegel, executive director of media relations for AT&T Mobility, told MacNewsWorld.

AT&T is not releasing specific sales figures, he added.

Activation Problems

Apple did run into some snags on Friday -- iPhone 3G customers in the U.S. in AT&T stores were sent home to activate their phones with iTunes, which was unaccessible for many iPhone customers during the day.

"There was a worldwide demand placed on Apple's iTunes system by people who were activating their new iPhone 3Gs, and then the original iPhone customers wanted to upgrade their software, too," Siegel explained.

The problem was cleared up by the end of the day, however, in AT&T's stores. So what about the next set of shipments?

In the U.S., AT&T says iPhone 3G shipments are on the way and will be available in a couple of days. The company is giving priority to those who purchased in advance during the weekend.

"This is a wonderful problem to have -- there is incredible demand for this product," Siegel said.