If the production plans are any indication, then it can be expected that Apple’s iPhone will see a huge boost in sales this year. Apple plans to produce 11 million iPhones this year, split between the current 2.5G phone, and the new 3G iPhone to be released in June. The production of the iPhone will be slowed in the first half of the year, then production is scheduled to dramatically increase in the third quarter after the introduction of the second generation iPhone, a year after its initial release.

This increase in production could turn out to be a gold mine for Apple and investors. If the production plans are correct, Bank of America analyst, Scott Craig, expects 8 million of the 11 million iPhones produced will be sold this year. Additionally, if the new 3G iPhone model is successful, Apple is looking at an additional $400 million in sales revenue for every additional one million units sold and an increase of 12 cents per share, which translates to more than a 2 percent increase in profit.

However, other analysts say that Apple’s production numbers are over exaggerated in order to keep their suppliers ready incase of an increase in demand. By this logic, it is estimated that only 5.5 million iPhone units will be produced initially, with about one million ready on the launch date of the 3G model and four or five million to be produced in the third quarter.

Consumers will be pleased to know that the current iPhone models, selling currently at $400 and $500 depending on storage space, will most likely see a price reduction when the newer models are released. The new model is not expected to differ from the older models in any way, other than it will take full use of AT&T’s 3G network.