New York: 

MANGTA HAI KYA? Models display the new iPhones on the day of its release earlier this month. PIC/AP

Pent-up demand for the iPhone 3G is manifesting itself on auction site eBay, where eager buyers are bidding in excess of US$1,000 to get what's turning out to be a hot commodity.

The demand for the iPhone remains high even off the Internet. Launched on July 11, the phone sold more than 1 million units worldwide over the first weekend. The demand has continued with carriers in the US and UK reporting iPhone 3G shortages.

The 16GB iPhone is priced at $299 in the US, with the 8GB version priced at $199. The bidding for a 16GB iPhone 3G on eBay is exceeding $1,000, with one bid ending at $2,325. The average 8GB iPhone 3G bid is reaching the $800 to $900 range.

In one auction a potential bidder asked if the iPhone could be shipped to Indonesia, indicating that bids were coming from countries where the iPhone won't be shipped by the end of this year. The phone is currently sold in 20 countries.

The sellers are advertising the iPhones as "unlocked" to work with any carrier, also providing a link to a recent hack issued to unlock the iPhone.

Supplies should normalise over the quarter and the iPhone 3G is set for long-term success, said Mike Abramsky, of RBC Capital Markets, in a report.