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Apple sells out of new iPhone

NEW YORK (Bloomberg) - Apple Inc. has run out of the new iPhone 3G S at half-a-dozen stores less than two weeks after its debut, selling out more slowly than its predecessor.

Six stores in states such as New York, Pennsylvania and California had sold out of all models as of this morning, according to Apple's Web site. The company began offering the new device, which boasts a video camera and more memory, on June 19 through more than 200 stores. Almost 60 stores had run out of the 16-gigabyte white model as of this morning. Apple had sold out of the iPhone 3G at almost all its US retail outlets over the same period last year. This time, the company faces more competition from rivals like Palm Inc. and Research In Motion Ltd., which are debuting their own phones with upgraded software and more features.

The iPhone 3G S starts at $199 for the 16-gigabyte version. Apple also halved the price on the older 3G model, taking the eight-gigabyte version to $99, which some analysts have said may eat into sales of the new device.

AT&T Inc., the exclusive service provider for the phone in the US, is "low on inventory" at many stores, spokesman Michael Coe said in an e-mail. Apple spokeswoman Natalie Kerris did not immediately return a phone call seeking comment.