iPhone inventory drops ahead of introduction of new model

The new iPhone is expected to be unveiled next month.

SAN FRANCISCO (AP) — Apple Inc. said Monday its online stores in the U.S. and U.K. are sold out of the iPhone, a sign supplies are being winnowed ahead of the launch of the device’s next generation featuring faster Internet surfing speeds.

The Cupertino-based company confirmed that the iPhone is out of stock online but added that brick-and-mortar stores run by Apple and iPhone carriers including AT T Inc. might still have units available. Apple has been known for clearing out its inventory of a certain product ahead of a major upgrade.

Apple spokeswoman Natalie Kerris declined to comment on reasons for the shortage and on Apple’s plans for an update to the device, which is widely expected to be unveiled in June at Apple’s Worldwide Developers Conference in San Francisco.

The paucity of iPhones for sale in some markets comes as Apple is hustling to meet its goal of selling 10 million of the hybrid iPod-cell phone-Internet surfing gadgets by the end of 2008. So far, Apple has sold 5.4 million iPhones, according to the latest data as of the end of March.

One way Apple’s expanding the iPhone’s reach is by inking deals with wireless carriers around the world, even breaking with its pattern of requiring exclusivity to sell in a certain country.

On Monday, four mobile providers in the Asia-Pacific region announced partnerships with Apple to bring the iPhone to their regions later this year.

Industry observers say some people may be holding off on buying an iPhone until the much-rumored next generation of the device is launched, and the phone is officially rolled out in more countries.

It takes some technical gymnastics, but it’s still possible to get the phone in some markets where Apple doesn’t have arrangements with wireless carriers.

Many of the phones sold so far have been bought legitimately in one country, modified to work on any cellular network, and resold in countries where Apple doesn’t have agreements to sell the iPhone. The trend expands the iPhone’s reach but deprives Apple of some of the subscriber fees that Apple splits with its carrier partners.

Another knock against the iPhone’s current design is that it works over so-called 2.5G networks instead of the faster 3G, or third-generation, cell phone networks, which are popular outside the U.S. The difference in performance is similar to a dial-up Internet connection versus a high-speed broadband connection.