iPhone 3G sales drop

The economy took its toll on Apple as the company reported a significant slowdown in iPhone 3G sales during the first fiscal quarter of 2009, which ended Dec. 27. The company reported it sold 4.4 million iPhone 3G devices in the quarter, compared with 6.9 million phones in the previous quarter, representing a more than 36 percent sequential decrease.

Tim Cook, Apple chief operating officer, said the company's visibility in upcoming quarters was cloudy. "Our visibility is not as good as in quarters past," he said. "Our fear is that the economy may slow the uptake of smartphones. We'll see. But we feel extremely good about our product pipeline."

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