Despite the customary price drop of Apple's last generation iPhone 4 and the free-on-contract iPhone 3GS, the company's newest handset dominated sales and has seen strong numbers not only from early adopters, but "conventional" smartphone users as well.
Asian supply chain sources claim OEM production of the iPhone 3GS remains steady with expected volume of two million units in the current quarter and 1.4-1.6 million units in the first quarter of calendar 2012.
Indications from Apple's supply chain suggest that iPhone and Mac sales are picking up strength ahead of Christmas, while the iPad remains on pace for a record setting quarter, albeit with softer sales than expected.
JP Morgan analysts who met with top Apple executives note that the company's leadership views both its own iPhone 3GS and Amazon's Kindle Fire as devices that will attract customers to iOS as they "gravitate to more feature-rich experiences."
Released earlier this week, Apple's first beta of iOS 5.1 issued to developers reportedly does not address battery problems experienced by some users, as solutions to the complex problem continue to elude.
Supply constraints remain Apple's only issue in meeting strong demand for the new iPhone 4S, with one new report claiming those constraints are being caused by limited availability of one crucial component.
Little more than a month after arriving on the market, Apple's latest handset has already become the second-most popular camera phone on photo sharing website Flickr, behind only its predecessor, the iPhone 4.
Demonstrating the success Apple has had in continuing to sell previous-generation iPhone models at a discounted price, the iPhone 3GS was the second-best-selling smartphone in the U.S. last quarter, bested only by Apple's iPhone 4.