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Last updated: Wednesday, July 22, 2009

Several months of hype surrounding its new iPhone 3GS have paid off for Apple, but has the company bit off more than it can chew? Demand has been high since the iPhone 3GS release in 18 countries, and the company hasn’t been able to keep up with demand. “We are currently unable to make enough iPhone 3GS and meet robust demand and are working to address this,” said Apple CFO Peter Oppenheimer, on an earnings conference call Tuesday. Right out the door, demand for the iPhone 3GS has been high. Apple sold more than one million handsets within three days of its release, according to Oppenheimer. iPhone releases traditionally have had great success. In the June quarter alone, Apple sold 5.2 million iPhone 3GS handsets, up from 717,000 in the year-ago quarter, so demand for the device should have been expected, say analysts. Apple didn’t respond to a request for comment in time for publication. What Recession? Foreclosures, bankruptcies and job cuts have skyrocketed, but that hasn’t put a dent in iPhone sales. “At least when it comes to Apple, the words ‘What recession?’ comes to mind,” said Michael Gartenberg, vice president of strategy for Interpret. “The fact that the 3GS is in short supply with people reportedly going to stores and waiting and told to come back is pretty significant at a time when other (competitors) are struggling.” So many factors could have changed consumers’ thoughts on the iPhone 3GS from being a “nice to have” device to a “need to have” phone because of its new features, including increased speed, voice control, a video camera, and a GPS map with compass. Consumers are likely convincing themselves that the device is more than just a cell phone, which justifies purchasing the not-so-cheap iPhone 3GS, according to Gartenberg. “It’s not going to be their cell phone, but…

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Apple Can’t Keep Up with Demand for iPhone 3GS

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