By TESS STYNES
AT&T Inc. said sales of Apple Inc.'s latest version of the iPhone set a record over the weekend, confirming strong interest in the new version of the popular smartphone.
AT&T on Monday said customers submitted more orders with the telecommunications giant on its first day of pre-orders and over the weekend. However, the company didn't disclose any sales numbers.
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Apple had appeared to have sold out of its initial inventory of the iPhone 5 Friday just an hour after it began accepting preorders.
The iPhone 5 is critical to Apple's continued success. Not only have the phones powered Apple to become the world's largest company by value, they have become the bedrock of the company's mobile-device strategy. Software in the iPad tablet computer is shared with the iPhone, largely intertwining the fate of both devices.
Apple is charging $199 for the cheapest iPhone 5 if customers sign up for a new two-year contract with their carriers. The company is also selling a version of its year-old iPhone 4S for $99. The iPhone 4, launched in 2010, is being offered free.
Apple will sell the iPhone 5 in nine countries, including the U.S., on Sept. 21. Other countries will follow.
Apple said this is its most aggressive iPhone rollout, adding that the device will be available in 100 countries by the end of the year.
The iPhone 5 faces off against a number of competitors eager to knock Apple from its perch. Phones running Google Inc.'s Android operating system continue to beat the iPhone in sales and their features are evolving rapidly. This year, Android phones are expected to comprise 60.3% of smartphone sales, up from 46.5% a year earlier, according to research firm Gartner Inc. Apple will have 22% of the market, up from 18.9%.
Meanwhile, Samsung Electronics Co. has outpaced Apple in shipments and its latest smartphone, the Galaxy S III, has been a hit. Nokia Corp. is preparing new smartphones running a revamped operating system from Microsoft Corp. in the coming months.
Against this backdrop, Apple responded by increasing the iPhone's screen size for the first time. It now measures 4 inches diagonally, up from 3.5 inches.
The new iPhone is also 18% thinner and 20% lighter than the last version and Apple redesigned the back and side bezels of the phone.
The device has a faster processor to make tasks such as browsing the Web faster. It also uses a new smaller type of power-charging connector designed to be more flexible.
The new iOS 6 mobile operating system, due out on Sept. 19, also contains new hooks to several popular Web services, including Facebook Inc. A new digital Apple-designed mapping service has turn-by-turn driving directions and a "flyover" mode that lets people zoom through cities.
Apple also announced a redesigned version of its iTunes Store that will be available in October. The new design leaves more room for featured content. The music and video store include a new playlist feature, improved search and better integration with Apple's iCloud.
â€"Ian Sherr and Jessica E. Vascellaro contributed to this article.Write to Tess Stynes at tess.stynes@dowjones.com
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