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A mobile computing warehouse: why the App Store matters

Apple sold one million 3G iPhones in three days, the company announced today.

The sales across 21 countries are testament to the global reach of the iPhone brand, which has revolutionised the smartphone market since its launch in the US last June.

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The launch of the updated 3G handset, which can access the web much more quickly than its predecessor, was marred by problems with Apple’s computer systems.

Customers across the world were unable to activate their new devices after the Apple servers could not cope with demand and did not allow users to download a new version of iTunes, the software through which the iPhone connects to an owner’s computer.

In the UK, the glitch was compounded by early problems with the activation procedures run by O2, the iPhone’s exclusive network carrier in Britain.

The activation issues had subsided by Saturday and after sales powered on, Steve Jobs, Apple’s CEO, was able to announce today: “iPhone 3G had a stunning opening weekend. The new iPhone 3G is clearly off to a great start around the world.”

Apple took 74 days to sell one million of the original iPhones but that was just in the United States. The iPhone did not launch internationally until November last year.

Apple has said that globally it plans to sell ten million iPhones in 2008, both old and new versions. It is estimated to have sold more than two million old models so far this year.

That target is clearly within range. In the UK, supplies of the more desirable 16GB version of the phone ran out quickly on Friday. Most O2 and Carphone Warehouse outlets across Britain had only a few dozen handsets of the phone available.

O2 said that it would get more deliveries of iPhones next week and that it hoped that all who wanted the new phone would have one by the end of August.

Analysts have said that, worldwide, up to two million phones will be required to meet initial demand.

The updated version of the combined iPod, mobile phone and internet browser features a high-speed internet connection and GPS satellite positioning.

It is available in the UK only from O2, Carphone Warehouse and Apple stores, and will work only on the O2 network.

The 3G iPhone will be available by the end of the year on a pay-as-you-go basis, but the cost of the handset has yet to be announced. Estimates vary around the £300 mark.

Apple also announced today that iPhone and iPod touch users have already downloaded more than ten million applications from its new App Store since its launch late last week.

The company hopes that the online store will transform the new iPhone from a communications device into a sophisticated mobile computing platform.

Developers have created a wide array of mobile applications which owners can download and install on their phone.

More than 800 applications are now available from the App Store, with more than 200 offered free and more than 90 per cent priced at less than $10.

Applications include customised versions of familiar web brands such as Google and MySpace, through to computer games, e-books, payment services like PayPal and navigation tools.

The Super Monkey Ball game, which synchronises with the device's accelerometer and lets users play by tilting the phone in different directions, is already gathering a fan base.

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