iPhone launch frenzy ramping up

With a little over two weeks until the iPhone hits store shelves in the US, Apple and AT&T retail sales representatives say they are preparing for a quick sellout and huge crowds on the 29 June launch date.

As of yesterday, clerks at Apple and AT&T stores in New York said they didn't know how many phones they would be getting for the big launch. Some blogs have speculated the number might be as few as 40 devices per store.

One sales representative from the AT&T store in Times Square, who asked not to be named, said that number was probably on the low side, especially for stores in big cities such as New York. He said the AT&T Times Square store received 20 devices for the recent launch of RIM's Blackberry Curve. The store quickly sold out of those phones and received another shipment of about 100 Blackberry Curves the following day.

Sales representatives also said they are expecting big crowds for the launch, many of whom are likely to camp out overnight in front of shops to make sure they are one of the first to get the new phone.

The Times Square representative said: "If I were you, I'd probably try going to some little store in New Jersey that nobody knows about."

Even Steve Jobs, Apple's CEO, suggested to technology pundit Arianna Huffington that she go to an AT&T store where lines might be shorter than at Apple's stores.

The iPhone, announced in January, will be sold only on AT&T's and Apple's websites and at AT&T's roughly 2,000 retail locations and in nearly 200 Apple stores around the US. And neither company is accepting pre-orders. The phones come in two versions, a 4GB model for $499 and an 8GB version for $599 with a two-year AT&T service contract.

Charles Golvin, an analyst with Forrester Research, said he agrees there is likely to be an initial frenzy for the phone, especially from Apple enthusiasts.

He said: "There's no question there will be high demand for the iPhone, at least initially. People buy new versions of the Mac operating system in droves when it comes out. You don't see that kind of demand when Microsoft launches a new version of Vista."

A sales representative at an AT&T store in Manhattan on Fifth Avenue said the store is receiving more than 100 phone calls per day, and at least another 100 inquiries from people walking in off the street asking how they can get their hands on an iPhone.

Apple expects to sell 10 million iPhones by the end of 2008.

Marguerite Reardon writes for CNET News.com