Apple said on Monday it has sold its one-millionth iPhone, a few weeks ahead of schedule, reassuring investors who had worried that last week's price cut signaled weak demand for the phone.

Apple's shares, which fell more than 9 percent last week following last Wednesday's price cut announcement, rose as much as 4 percent in morning trading on the Nasdaq.

Apple cut the price of its first mobile phone to $399 from $599 and said it would sell 1 million units by the end of September.

The iPhone was launched to much fanfare in late June and combines a touch-screen phone, Internet browser and music and video player.

"One million iPhones in 74 days -- it took almost two years to achieve this milestone with iPod," Apple Chief Executive Steve Jobs said in a statement.

Apple has said it will sell 10 million iPhones by the end of 2008.