The iPhone 3G hasn't even been properly introduced yet and analysts are already forecasting large quantities to be sold - some 18 million units, to be precise. Jenny Lai, analyst with the Hong Kong-based CLSA Emerging Markets, says that Apple has hit the sweet spot for consumers by pricing the 8GB model of the new device at $199.

Jenny Lai is an analyst that covers the contract manufacturer responsible for producing the 3G iPhone. In a written report, she claims Apple could sell as many as 18 million new iPhones this year, Macworld informs. Apple's original self-imposed landmark was, and still is, selling 10 million units by the end of the year, including the original iPhone.

"The higher expectation on the 3G iPhone reflects attractive prices and a broader distribution channel (availability in ~70 countries)," wrote Jenny Lai. "The newly added white color for the 3G iPhone also bodes well to consumers," she added.

Those who've been reading the news lately should already know that Apple has introduced two versions of the new iPhone - an 8GB model, and a 16 gig model - with the latter coming with two different case designs. The 16GB iPhone 3G sports twice as much storage as its sibling, for just an extra hundred bucks. Adding this to the two-color option (black and white), Lai believes it presents quite an advantage.

Exactly what Lai's high expectations are based on is still not known (except the sweet price); nevertheless, she herself predicts the new handset to be in short supply when it launches on July 11. This, she claims, will be the effect of a shortage of "some key mechanical components," the Macworld piece reads. However, the shortages are expected to last only by the end of that month.

Lai covers Apple's contract manufacturing partner for the iPhone, Hon Hai Precision Industry. Hon Hai is currently the world's largest contract electronics manufacturer, which is why iPhone sales could count for as much as 10 percent of its entire revenue, should volumes meet Lai's targets.