Apple Unable to Meet iPhone 3GS Demand

Cupertino, California-based Apple announced on Tuesday its earning results for the Q3 FY 09, ended June 27, 2009, and stated that the newly launched iPhone 3GS had seen 'tremendous' demand on the market, while also adding that it had difficulties in shipping the requested unit volume. Up until now, it seems that the demand on the device has outpaced the initial production capabilities.

According to the company, only 18 countries received the device, out of the 81 that the iPhone 3G has managed to reach. It looks like the price cut that the iPhone 3G has recently seen has helped it see more traction on the market, although Apple hasn't been specific on the sales differences between the second and the third iteration of the device.

Along with the new price tag, another selling point for the handset seems to have been the newly launched iPhone OS 3.0, which attracted mainly business customers, as Apple's executives stated. Reportedly, more than 25,000 iPhones are currently used by governmental agencies, and the handset has also seen the highest rank in a J.D. Power survey on satisfaction among business users.

“The demand has been staggering almost in every country that we've shipped in,” said the firm's chief operating officer, Tim Cook. “We are currently unable to make enough iPhone 3GSs to meet robust demand, and we're working to address this,” Apple Chief Financial Officer Peter Oppenheimer stated during the conference call on the company's financial results.

Even so, it seems that Apple has recently operated an increase in handset production, which should supposedly offer it the possibility to meet demand when the iPhone 3GS reaches more markets. “We are confident enough in the production ramp that we will be launching about 20 additional countries on 22 August - which would bring our total to over 40 - and we still expect to be selling the iPhone in over 70 countries later this calendar year,” Cook said.