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Apple's IPhone 4S Lines May Help Weekend Sales Hit 4 Million

(Updates with San Francisco comments in 13th paragraph.)

Oct. 14 (Bloomberg) -- Apple Inc. is poised to sell as many as 4 million units of its new iPhone 4S this weekend after customers around the world lined up to buy one of the last products developed under Steve Jobs.

The device, available today in the U.S., Australia, Canada, France, Germany, Japan and the U.K., is projected to outperform last year's introduction of the iPhone 4, which topped 1.7 million units in its first weekend. For the iPhone 4S, most estimates range from 2 million to 3 million, with Yankee Group analyst Carl Howe predicting sales of as much as 4 million.

In New York, London, Tokyo and Frankfurt, hundreds of people lined up overnight at the company's stores. At London's Covent Garden store, 20 Apple employees formed a human tunnel for shoppers entering the store, whooping, chanting and doling out high fives. The line outside New York's iconic glass cube store on Fifth Avenue snaked back and forth across the plaza out front and stretched halfway down the block.

“I'm a diehard Apple fan and I've been using Apple products since I was 12,” said Cary Santos, 24, who lined up at the Fifth Avenue store at 11 p.m. yesterday and spent the night checking e-mail and news on his iPad 2. “This company has rocked American life.”

Biggest Debut

The release represents the end of Apple's era under Jobs, who died this month after an eight-year battle with cancer. The iPhone 4S has received mostly positive reviews for its voice- recognition software, speedier processor and improved camera. The device also provides Apple with fresh ammunition in its fight against Google Inc.'s Android software, which will appear on a host of new smartphones in the year-end holiday season.

“It's going to easily outpace any previous launch,” said Charlie Wolf, an analyst at Needham & Co. in New York. It helps that the iPhone is available on the three largest U.S. carriers for the first time, which will bring in new buyers, he said.

The phone costs $199, $299 or $399, depending on features. Apple also has released an update to its iOS mobile operating system, which customers can download to their existing devices. The software comes with 200 new features and a Web storage service for synchronizing photos, documents, music and other files across different Apple gadgets.

Android Showdown

While the iPhone is the best-selling single smartphone, all of the devices running Google's Android operating system account for more of the industry's sales. HTC Corp., Samsung Electronics Co., Motorola Mobility Holdings Inc. and other manufacturers have adopted the software. Google offers Android for free and then makes money on mobile advertising and services. That revenue now accounts for $2.5 billion a year, the company said yesterday when it released quarterly results.