It appears that Apple has been hard at work ensuring that iPhone 3G production, which is already up seven times what it was for the first generation iPhone, will be able to meet the high level of demand.

TechCrunch reports that, Foxconn, the Taiwanese electronics company that produces the iPhone 3G for Apple has increased production to 800,000 units per week. “This is “above current full capacity” and there may be some concerns with quality control.”
One source states that Foxconn will be able to sufficiently ramp production over time, yet at the current sell rates, the company is producing iPhones at a rate of 40 million per year, an amount that far exceeds early estimates.
As Apple is continuing to add countries to the mix, with iPhone currently being available in 23 countries and 50 to be added lather this year, production will need to remain in high gear. “Foxconn was initially told to expect sales of up to 40 million units in the first year, but that those numbers are being revised upwards sharply.”
While Apple has claimed to of sold over 1 million iPhones in the first 3 days, there has been no updated total since.