Apple Expected to Offer 3G iPhone This Year.

Production cutbacks for Apple, Inc.'s iPhone appear to herald a 3G iPhone as promised by Apple and AT&T. A 3G iPhone is also needed for Apple to penetrate markets in Europe and Asia where a gray market in unlocked iPhones is booming. Visitors to the U.S. are buying Apple's iPhone and workers in China factories may be supplying iPhones.

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