Apple has priced the iPhone 3G at the "sweet spot" and could well sell 18 million handsets this year - over the 10 million target the company has set itself - an analyst has said.

"The higher expectation on the 3G iPhone reflects attractive prices and a broader distribution channel", wrote Jenny Lai, analyst at CLSA Emerging Markets, in a report.

As well as the more attractive pricing, from a consumer point of view a return to traditional iPod-white is being recognised as a clever move for the company. "The newly added white color for the 3G iPhone also bodes well to consumers", Lai said.

Giving the example of Motorola's original RAZR, once the price of the handset dropped to $200 in 2005 sales of the device took off, Lai says Apple has matched this costing, stating: "The price squarely hits the sweet spot for consumers".