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Smaller crowds greet new iPhone from Apple

iPhone - New model fails to draw the crowds
iPhone - New model fails to draw the crowds

The latest iPhone hit US stores today with new features and faster speeds, drawing some fans but not the crowds that had swarmed Apple and AT&T stores at previous iPhone launches.

At an AT&T store near New York's Grand Central Terminal, a handful of people had lined up before 6am as store employees set up ropes and posts in the event that more consumers arrive later in the day.

The new iPhone, the 3GS, was unveiled last week at Apple's annual developers' conference. Priced at $199 for a 16-gigabyte model, the smartphone features a faster processor, better battery life and the ability to take videos.

But because many people had already pre-ordered the new phone, which offers a more modest technological leap over the current model, many analysts had predicted the first-day throng to be less than in previous launches.

At Apple's flagship New York store in midtown Manhattan, hundreds of shoppers queued up before the 7am opening but the line also appeared shorter than in years past.

Apple released its first iPhone model two years ago, and it quickly became a consumer phenomenon. The second-generation 3G model was released last summer.

Apple has sold more than 40 million units of the iPhone and iPod Touch, which uses the same software. The touch-screen phone competes with the more business-oriented BlackBerry from Research in Motion and Palm's new Pre, which has seen solid demand since its release this month.