Broadband Developments

Big news over the weekend was the Apple iPhone 3G.  I took the weekend off to get away from the hype but apparently it was a big weekend.  First the rush was on to get the iPhone then the big crash by the fload of activations.

Apple is posting a sales number of 1 million iPhones sold.

Apple executives were pleased with the early results. “IPhone 3G had a stunning opening weekend,” Apple Chief Executive Steve Jobs said in a statement. “It took 74 days to sell the first 1 million original iPhones, so the new iPhone 3G is clearly off to a great start around the world.”

Still, iPhone sales pale compared with those of established mobile phone makers, such as Nokia , which sells almost 10 million phones each week, or Samsung Electronics Co Ltd  and LG Electronics Inc , which each ship more than 100 million phones a year.

While those phone makers often unveil dozens of models in year, Apple has only one, and its sales spark a retail frenzy as consumers around the world line up to grab one.

The iPhone 3G still has the popular touch screen, but also offers a faster wireless network and the ability to download third-party applications like games.

Perhaps more important, the new iPhone sells for about $200 in the U.S., about one-half the price of its predecessor.

“We don’t yet know the breakdown of how many phones were sold to new customers and how many existing iPhone customers upgraded, but regardless, sales during the first weekend were very impressive,” said Jeff Kagan, an independent telecommunications analyst, in a note.

Analysts said iPhone sales may dent sales and profit margins at Samsung and LG this year.

Activation problems marred its U.S. launch on Friday, with many buyers leaving stores frustrated that they could not use the hotly anticipated gadget after waiting in line for hours.