iPhone 3G set to go into production
Saturday, March 29th, 2008
Apple is preparing to launch its wireless high speed version of the iPhone. Rumours have been flying around for some time as to when Apple will release their new iPhone and who would manufacture it.
It is impossible to hide a huge order from the world’s stock markets so now it seems to be official that the new generation iPhone will be in production shortly, and a summer release looks probable.
Long time, front runner for the much coveted manufacturing contract for the new gadget, Taiwan’s Hon Hai Precision Industry Co. Has secured an initial order, totaling 11 million units. Some of those iPhone’s will be the existing model 2.5G, the rest will be the new and upgraded 3G.
Insiders say that Apple is on target for a June 2008 launch of the 3G. This will come around the year after the original iPhone was unveiled. Last year’s launch was marked by a very limited opening supply of the phones, followed in the third quarter by a more widespread availability. The feeling is that the 3G will probably follow the same pattern.
Scott Craig, well known analyst, working for Bank of America believes that Apple’s production plans indicate a significant increase in. This can be interpreted as a boost in sales, and Mr. Craig believes that Apple is aiming to sell 8 million iPhones by the end of the year.
To put that into perspective, for every one million additional phones that Apple can sell, that will equate to $400 million extra profit.
Other respected analysts believe that Apple’s order with Hon Hai is over-ambitious in a fairly typical fashion for the company, which has a tendency to overestimate potential sales. The idea behind this strategy seems to be that should sales suddenly boom, Apple will be in a position to request additional stock from the manufacturer.
These analysts believe that Apple will actually only produce somewhere around half of the projected 11 million units this year. They further believe that the initial production run for the 3G will probably be around one million units. With possibly 5 million more 3G’s by the end of 2008.
One big question mark over the 3G is what will Apple do with their existing model? The new phone is set to utilize AT&T’s much quicker network capabilities; this will give the 3G a big boost in speed, which will be welcomed by the phones Internet users.
The 3G will also have a host of new features that will include a GPS navigation system. Apple were previously posting job advertisements on their site, requesting applications for “The recognition technology you create may extend beyond Mac OS X to other applications and the iPhone.” A teaser that have left many wondering if this new technology will be available on the new 3G. It seems certain that the older model will quickly see relatively large reductions in price.
Apple is clearly hoping that its line of phones will give it an end of year sales boom, especially if the new model becomes the ‘must have’ Christmas gadget. It should be remembered that Apple is not the only player in this game.
There are several other companies with similar touchscreen units, aimed at taking on the iPhone. Sony received a big ‘wow factor’ when it displayed its upcoming Xperia that includes a unique sliding keyboard. The nuvifone from Garmin may also give Apple a run for its money.
In addition, don’t forget the next BlackBerry, the 9000, which may be as anticipated as the new iPhone, and has a huge number of loyal fans around the world.


