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CNN is reporting that the iPhone 3G has broken the three million unit marker, according to Michael Cote of the Cote Collaborative.

Cote, a former T-Mobile exec turned analyst, says that “... they are seeing unprecedented demand ...” and that it’s not letting up. CNN says that Cote has been extremely accurate in the past about wireless predictions. I don’t think this estimate is a stretch with the way the iPhone has been selling.

Hitting the three million mark already is much sooner than Wall Street analysts had previously predicted. They anticipated three to four million units for total quarterly sales.

We already knew that one million iPhone 3Gs had been sold in the first three days of sales, a huge improvement on the two and a half months it took the original iPhone to reach the same number.

CNN lists three reasons for these sales numbers.

1. A lower upfront price of $199 for the 8GB
2. A continuation of the already well accepted original iPhone
3. International sales—more countries means more people wanting iPhone 3Gs

I think we can safely add iPhone Apps to that list as a huge driving factor of sales for the iPhone 3G.

Cote thinks Apple will have a hard time providing enough iPhone 3Gs to continue with their international launch schedule. I doubt Apple could be much happier.

Via [CNN]