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Associated Press  (click to enlarge)
Customers examine Apple iPhones at an Apple store in Palo Alto, Calif.
 
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CONTACT THE HERALD
Mike Benbow, Business Editor
benbow@heraldnet.com
 
Published: Tuesday, May 13, 2008

Shortage of iPhones precedes new version

The Internet-capable phone isn't available online, and may be out until June when a new, faster model is expected to be released.

SAN FRANCISCO -- Apple Inc. said Monday its online stores in the U.S. and U.K. are sold out of the iPhone, a sign supplies are being winnowed ahead of the launch of the device's next generation, which features faster Internet surfing speeds.

The Cupertino-based company confirmed that the iPhone is out of stock online but added that brick-and-mortar stores run by Apple and iPhone carriers including AT&T Inc. might still have units available.

Apple spokeswoman Natalie Kerris declined to comment on reasons for the shortage and on Apple's plans for an update to the device, which is widely expected to be unveiled in June at Apple's Worldwide Developers Conference in San Francisco.

The paucity of iPhones for sale in some markets comes as Apple is hustling to meet its goal of selling 10 million of the hybrid iPod-cell phone-Internet surfing gadgets by the end of 2008. So far, Apple has sold 5.4 million iPhones, according to the latest data as of the end of March.

One way Apple's expanding the iPhone's reach is by inking deals with wireless carriers around the world, even breaking with its pattern of requiring exclusivity to sell in a certain country.

On Monday, four mobile providers in the Asia-Pacific region announced partnerships with Apple to bring the iPhone to their regions later this year.

SingTel will sell the gadget in Singapore, Bharti Airtel Ltd. in India, Globe Telecom Inc. in the Philippines and Optus in Australia, the companies said in a brief joint statement, without giving details.

SingTel owns Optus and holds a 30.5 percent stake in Bharti and 44.5 percent in Globe.

SingTel has about 2.3 million mobile subscribers in Singapore and around 7 million in Australia, according to data as of Dec. 31. Bharti currently has about 64 million subscribers, while Globe reported a 21.3 million mobile subscriber base for the quarter ended March 31.

Last week, the top mobile phone operator in Latin America, America Movil SAB, also announced plans to deliver the iPhone to its region. America Movil has 159.2 million subscribers in 16 countries, including Argentina, Brazil, Chile, Colombia and Mexico.

In recent weeks Apple has also signed deals with Rogers Communications Inc. to sell the device in Canada; Milan-based Telecom Italia SpA to sell the iPhone in Italy; and Vodafone Group PLC, the world's biggest mobile company by sales, to sell it in a total of 10 countries, including Australia, India, Italy and Turkey.

Until the spate of the latest deals, Apple adhered to its policy of exclusivity with one carrier in each country.

The exclusive deals for the iPhone were with AT&T Inc. in the United States, O2 in Britain, T-Mobile in Germany and France Telecom's Orange wireless arm in France.

Industry observers say some people may be holding off on buying an iPhone until the much-rumored next-generation of the device is launched, and the phone is officially rolled out in more countries.

Apple is also planning a software update for this summer that makes the iPhone work better with corporate e-mail, a necessary upgrade to help the iPhone compete with Research in Motion Ltd.'s BlackBerry and Palm Inc.'s Treo smart phones.

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