Apple sells 1 million new iPhones

NEW YORK (Reuters) - Apple said on Monday it has sold 1 million units of the new iPhone in its initial weekend, on par with estimates set by analysts, sending its stock rising more than 2 percent.

The original iPhone, introduced in late June 2007 in the United States only, sold about 270,000 units in its first two days. Sales had topped 1 million units by early September. The new device sells in 21 countries.

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 Oy, which sells almost 10 million phones each week, or Samsung Electronics and LG Electronics, 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 (100 pounds) 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.