The combination of iPod, cell phone and Internet device the revolutionary iPhone from Apple “will be sold out by afternoon” on opening day, predicts Richard Doherty, an independent analyst with The Envisioneering Group. “There’s that much anticipation for it.”

Apple CEO Steve Jobs has projected sales of 10 million iPhones in its first year. With two models priced at $499 and $599 depending on storage capacity that would generate more than $5 billion in additional retail sales.



 

Consumers must also commit to a two-year contract with exclusive carrier AT&T Wireless (formerly Cingular). With Internet and voice charges, a typical plan is around $60 monthly. AT&T hasn’t said what kind of consumer incentives it might offer to sweeten the deal. “This isn’t for the faint of heart,” says Doherty.

 

Apple announced the iPhone in January and has been characteristically mum about details since. The company formally announced the release date in TV ads that began airing Sunday night.


Doherty projects potential iPhone sales of 100 million by 2011— completing Apple’s transformation from a computer company to a business dominated by consumer gadgets. Apple has sold more than 100 million iPods since 2001.


Neither AT&T nor Apple is accepting pre-orders for the phone, so it will be first-come, first-served at more than 1,800 AT&T and nearly 200 Apple stores, plus the Apple website.

 

Doherty says tight supply will make the product even more popular. He doesn’t expect Apple to be able to fulfill demand until late summer or early fall.

 

Doherty says rival manufacturers will benefit as they promote high-end “smart” phones with iPhone-like features, including music and Web access.

 

The best-selling cell phone of the last five years is Motorola’s Razr, says Charles Golvin, an analyst at market tracker Forrester Research. Motorola has sold nearly 100 million Razrs since 2004, but many have been substantially discounted, says Golvin.

 

“Motorola cut prices and margins to drive market share, and Apple won’t do that,” Golvin says.


Investors have iPhone fever as well. Apple stock Monday hit a record $121 a share.

Apple, iPhone, Cell Phone, Internet, Touch Screen, iPod, Mac, PC, Computers