iPhone Demand for Apple's iPhone 3G remains strong, which could be forcing Apple to ramp productionbeyond its original estimates.TechCrunch is reporting that Apple has asked Foxconn, formally known as Hon Hai, to increase production of the iPhone3G to 800,000 units a week. That pace translates to about 40million units a year, far greater than what most analysts had beenexpecting the company to sell in the iPhone 3G era.
A short-term bump in production capacity may not imply that Foxconnwill keep up that pace; TechCrunch's report alludes to "someconcerns about quality control" on the part of either Apple orFoxconn related to the increase. After six weeks with no iPhonesales, there was clearly pent-up demand going into the July 11 launch of the iPhone 3G that may not be sustainable over the rest of the year withoutcausing problems.
But more countries are expected to join the official ranks ofiPhone users in the next several months, and the holiday shoppingseason is usually the catalyst for all sorts of gadgets. Aproduction increase could offset that demand while making it easierto get an iPhone 3G without waiting two weeks for an AT&Tdirect-fulfillment order or playing iPhone roulette at an Applestore.

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