iPhones still selling, snags and all

CUPERTINO, Calif., July 28 (UPI) -- Bugs in Apple's new iPhone dampened its reception but haven't noticeably slowed demand in the United States, industry observers said.

"Clearly, Apple is having manufacturing and software problems," industry analyst Rob Enderle told USA Today. "A star product like the iPhone does a lot of great things for Apple but when things go wrong, it can bring down the entire image of a company."

Industry analysts say the phone was rushed to market. The MobileMe business feature system has needed about 70 repairs since the phone was released July 11, the newspaper reported.

Apple has posted several online apologies. "It's been a rocky road, and we know the pain some people have been suffering," the company said recently.

But the primary problem remains a lack of iPhones. Stores have run out quickly and lines for the product remain in some locations.

"People line up for it, so it must be good. But that can't last forever," Enderle told USA Today.