Apple iPhone frenzy expected as Carphone and O2 admit shortage

by Daniel Farey-Jones, Brand Republic 11-Jul-08, 08:05

LONDON - UK consumers will have to scramble to get their hands on Apple's 3G iPhone today after O2 and Carphone Warehouse warned they have limited stocks available.

According to O2, each of its stores has on average just "a few dozen" units in stock, while Carphone Warehouse has already sold out its online quota of 3G iPhones and has warned that many of its shops will not have any.

O2, Apple's network partner, said: "We are experiencing unprecedented demand for the device and while we are confident that all customers who want iPhone 3G will get one by the end of this summer, initial supply is limited and will be for some weeks."

UK consumers' enthusiasm for the iPhone has been ignited by Apple improving the specifications and dropping the price. While the first-generation 8GB model cost £269 upfront, the 3G equivalent is free to those willing to pay a £45 or £75 monthly tariff.

Apple has a 2008 global sales target of 10m sales for the 3G model, and Deutsche Bank analyst Chris Whitmore expects it to hit 10.5m this year. "They're going to bring users in droves to this product," he said.

Apple yesterday revealed it has opened an iPhone Apps Store, offering selected officially approved applications from third parties. There were around 500 available applications, of which around 100 were free.

MySpace has provided one of the free applications. It simply allows iPhone users faster access to the MySpace mobile website, with the addition of an instant photo upload feature.

The MySpace mobile site receives more than 1.7m daily unique visits.

John Faith, general manager and vice-president of mobile at MySpace, said: "The iPhone is a natural fit for a MySpace application. There is hipness to this device that resonates with our core audience."

Among the other applications for the iPhone are Facebook, Twitter, Pandora's streaming music service, PayPal, business tools and games.

Facebook is offering a free Facebook for iPhone application that is also faster than using the Facebook mobile website, offers instant photo upload and also a chat feature, according to its blog.