Apple's IPhone 3GS Sales Top 1 Million In Debut Weekend

   DOW JONES NEWSWIRES 
 

Apple Inc. (AAPL) reported that it sold more than one million next-generation iPhone 3GS as of Sunday, defying some analysts who had predicted it wouldn't reach the levels attained during its predecessor's launch.

Apple said six million customers also downloaded its new iPhone 3.0 software in the first five days since its release.

Shares recently were up 0.2% at $139.76 in premarket trading Monday. The stock is down roughly 20% in the past year.

Apple recently halved the price of its entry-level iPhone to $99 and rolled out the next-generation model for $199 to $299, looking to sustain the momentum for its popular smart phone amid the recession and fresh competition.

Steady streams of customers into Apple stores since the iPhone unveiling on Friday suggested consumer interest in the iconic smart phone remains high since the first version was released roughly two years ago, despite increasing competition from Research In Motion Ltd.'s (RIMM) BlackBerry and Palm Inc.'s (PALM) recently introduced Pre.

Piper Jaffray analyst Gene Munster predicted last week that Apple would sell 500,000 new iPhones over the weekend, which would be less than the one million 3G versions sold last year on its launch weekend. Part of the lower expectations was from the new 3GS being released in fewer countries and offering less dramatic changes.

-By Tess Stynes, Dow Jones Newswires; 201-938-2473; [e-mail]