(cache) Sales of New iPhones Top 1 Million

The launch of the iPhone 3G last year turned messy, as Apple and phone company servers failed to cope with the load of new customers trying to activate their phones. That problem recurred Friday with the launch of the 3G S, but to a smaller extent. Some customers who tried to activate the phone at home got messages that the process could take 48 hours to complete.

Some customers got e-mails on Sunday promising a $30 credit at Apple's iTunes store as compensation for the hassle.

Apple did not break down where the million units were sold. Dallas-based AT&T Inc. is the iPhone's exclusive carrier in the United States and has said it sold hundreds of thousands of phones via pre-order.

The sales figures demonstrate that the iPhone's cachet is intact, and even growing, despite reinvigorated competition. Other manufacturers are putting out phones that mimic some of the iPhone's signature features. In particular, the newly released Palm Inc.'s Pre, available exclusively for now through Sprint Nextel Corp., has generated a lot of buzz and favorable reviews.

The iPhone 3G S has a faster processor and a better camera than the 3G, among other differences. The 3G is still on sale, for $99. The 3G S costs $199 or $299 depending on the memory capacity.

Apple shares fell $2.92, or 2.1 percent, to $136.56 in morning trading Monday.