Apple will launch a 3G version of its iPhone by mid-year that is likely to be powered by German chipmaker Infineon Technologies, UBS analysts told clients in a note published this week. The note adds that Apple will start slowing down production of the current EDGE-based devices around this timeframe. It is expected that Infineon – which currently supplies baseband processors for the EDGE iPhone – will provide Apple with a HSDPA platform. Mobile Business Briefing has previously reported that both O2 and AT&T, the iPhone’s exclusive operator partners in the UK and the US respectively, have already suggested that Apple will release a 3G iPhone by the middle of this year.

Meanwhile Apple has reiterated its intention to sell 10 million iPhones this year, following analyst comments that it will struggle to meet its target. Addressing the Goldman Sachs Technology Investment Symposium, Apple COO Tim Cook said the high number of unlocked iPhones circulating worldwide – estimated at around 1.3 million – is a sign of “great demand.” Apple also said it will unveil “some exciting new enterprise features” next week, when it plans to introduce the iPhone’s new software development kit (SDK). The SDK is anticipated by software developers keen to design business applications for the iPhone. Earlier this year, AT&T began offering business accounts for iPhone users and Apple claims demand exists for a more business-oriented iPhone. The news coincides with reports that O2 will be the exclusive operator of the iPhone as it launches in Ireland next month, while rumours suggest an Austria launch, with T-Mobile as the chosen partner, is imminent. This week O2 UK said the iPhone is its fastest selling device ever and has an ARPU measurement 30% higher than an average monthly customer.