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Apple's new iPhone snapped up around the globe

Posted: Saturday, July 12, 2008, 10:11 (BST)
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Apple's new iPhone made its hotly awaited debut on Friday, with buyers storming stores in Asia and queues forming in Europe and the United States.

Sales of the device, which combines a music and video player, cell phone and Web browser, kicked off in New Zealand, where a 22-year-old student became its first owner.

"I'm going to put this on charge, have a play around with it and have a nice long sleep," said Jonny Gladwell, who queued in freezing temperatures for around 60 hours to be the world's first to buy the iPhone at a minute past midnight on Friday.

Guards in kevlar vests and helmets brandished shotguns and stood watch over 500 devices on sale in Hong Kong, a city that has seen its share of unruly crowds at major product launches.

Softbank Corp, which sells the iPhone in Japan, said over 1,500 people lined up outside its flagship Tokyo store. Policemen yelled at passers-by to make room.

In cities such as London, New York, Boston and San Francisco, where Apple's first iPhone has been available since last year, more orderly queues formed outside stores as consumers sought to get their hands on the new gadget before it sells out.

"We ordered lots. We've seen the demand the first time, but we're even blown away by this demand. I think it is unprecedented," Steve Alder, Telefonica's O2 UK iPhone director, said in London. "We've got stocks coming in every week . I am confident that by the end of the summer, everyone will have one who wants one."

With its latest device, Apple, the creator of the Macintosh computer and iPod, hopes to ride on burgeoning demand for smartphones, an area phone makers such as South Korea's Samsung Electronics, Taiwan's High Tech Computer and Finland's Nokia Oyj are fighting to dominate.

The new iPhone supports third-party software such as games and instant messaging. Its e-mail capability squarely targets the market of Research in Motion's Blackberry.

Joshua Deutch, 31, an IT consultant, said he waited until the iPhone could support his work e-mail before getting it, echoing comments from several people in the line of over 200 at the Apple store in New York's trendy Soho shopping district.

"I couldn't get it before. I've been wanting to access my corporate e-mail. A lot of people carry around 3 or 4 phones. I just can't deal with that," he said.

Apple shares, which had risen by nearly 4 percent over the last week in anticipation of the launch in 21 countries, were down 1 percent on Friday in a generally weak market. Apple shares often fall after huge product launches.

"It's really what happens in the next month when the hype wears off or even in the next six months," said BMO Capital Markets analyst Keith Bachmann, adding he thought the company could face some supply shortages.

THE IPHONE PHENOMENON



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