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Apple and AT&T score big with iPhone launch

Everyone knew that the iPhone was going to be big from the moment it was announced in early January. Apple CEO Steve Jobs hailed the device as the ultimate in mobile communications given that it could function as a phone, a mobile Internet device and as an iPod.

As the months progressed, the hype mushroomed even though the iPhone lacked a user-replaceable battery, physical keyboard, expansion slot, voice dialing, A2DP, MMS, iChat, flash support, copy and paste ability and video recording -- not to mention that the iPhone was tied solely to AT&T.

It appears that all of the minuses stacked against the iPhone weren't enough to phase buyers who lined up days in advance to purchase the latest "it device" from Cupertino. Not even the $499 (4GB) and $599 (8GB) price tags were enough to keep Apple from selling around 525,000 iPhones from 6:00 PM Friday evening through close of business on Sunday.

Nearly all of AT&T's stores were depleted of iPhone stock by Saturday whereas Apple's retail stores are currently faring much better (you can check iPhone availability here).

Apple's iPhone launch didn't go off glitch free, however. Many users complained of activation problems with iPhone. The iPhone can be activated through iTunes and the steady rush of users scrambling to activate their phones overloaded AT&T's servers.

"We are working on any issues on an individual basis with customers who were impacted," said Michael Coe, a representative for AT&T.

AT&T spokesman Mark Siegel noted that a "small percentage" of customers were having activation issues. "Our first priority is to get them up and rolling as quickly as we can," Spiegel continued.

For its part in the matter, an Apple spokesman simply said "There are a small percentage of iPhone customers who have had a less than perfect activation experience."

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In 1 years time
By BioRebel on 7/2/2007 12:05:09 PM , Rating: 2
We're gonna be reading about everyone canceling their plans due to issues with the phone and at&t itself. Just wait...




RE: In 1 years time
By masher2 (blog) on 7/2/2007 12:16:52 PM , Rating: 2
Were you one the folks predicting they wouldn't sell any, due to the price?


RE: In 1 years time
By retrospooty on 7/2/2007 12:24:11 PM , Rating: 4
I was... and I still hold to it. This initial rush is to be expected. Obviosly the fantastic UI and sleekness will sell to the Apple fans and a few others that want it "now" and have the cash to burn. Apple expects to sell 10 million by the end of 2008, and after this inial wave of early buyers, I predict it will waver, dramatically.


RE: In 1 years time
By das mod on 7/2/2007 12:27:47 PM , Rating: 4
just look at ebay ....

do you think all those people who bought one

did it because they like it ??

no .... they did it to profit from it....


RE: In 1 years time
By KristopherKubicki (blog) on 7/2/2007 2:26:24 PM , Rating: 5
At the Roosevelt and Ashland AT&T store in Chicago, a woman came to the line around 5:30 to see there were about 60 people already in line. She paid the first kid in line $800 for his spot -- the kid went to the back of the line (right behind me). The woman then announced she planned to buy $26,000 worth of iPhones, but if anyone wanted to get one she'd sell some of hers for $1,000 before she put the rest on ebay.

Nobody told her until 6PM that this store had a 1 per customer limit (most other stores had a 2 per customer limit). The kid behind me got an iPhone too.


RE: In 1 years time
By One43637 on 7/2/2007 2:50:08 PM , Rating: 4
quote:

by KristopherKubicki on July 2, 2007 at 2:26 PM

At the Roosevelt and Ashland AT&T store in Chicago, a woman came to the line around 5:30 to see there were about 60 people already in line. She paid the first kid in line $800 for his spot -- the kid went to the back of the line (right behind me). The woman then announced she planned to buy $26,000 worth of iPhones, but if anyone wanted to get one she'd sell some of hers for $1,000 before she put the rest on ebay.

Nobody told her until 6PM that this store had a 1 per customer limit (most other stores had a 2 per customer limit). The kid behind me got an iPhone too.


You know what's funny? I saw a video of some lady in Dallas doing that very same thing. It was quite comical.

http://www.myfoxdfw.com/myfox/pages/Home/Detail;js...


RE: In 1 years time
By Chernobyl68 on 7/2/2007 3:23:52 PM , Rating: 5
iPhone?

600 dollars

Head of the line privileges?

800 dollars

attept to buy store supply?

26 thousand dollars.

realizing to late the 1 per person policy?

priceless.


RE: In 1 years time
By Belard on 7/2/2007 5:07:00 PM , Rating: 2
That is hilarious! Especially on Video..!


RE: In 1 years time
By omnicronx on 7/2/2007 5:24:57 PM , Rating: 2
thats so funny!! even better theres no way fox news didnt know there was a one per person limit, and they just watched it happen.. its not like the kid lied and said you could buy as many as you wanted haha. thank you fox news dallas! you hicks make me laugh!


RE: In 1 years time
By KristopherKubicki (blog) on 7/3/2007 2:30:21 PM , Rating: 2
Lol that video is hilarious. Very similar to what happened at my store. The woman in Chicago was *IRATE* -- the one in the video seems relatively calm about completely blowing $800.


RE: In 1 years time
By noxipoo on 7/2/2007 4:31:10 PM , Rating: 2
what are you doing over there? that's not the trendy part of town! you need to be seen buying an iphone! make sure you use it often on the train, and loudly.


RE: In 1 years time
By KristopherKubicki (blog) on 7/3/2007 2:32:22 PM , Rating: 2
quote:
what are you doing over there? that's not the trendy part of town! you need to be seen buying an iphone! make sure you use it often on the train, and loudly.

You must be a Chicagoan :) Priceless.


RE: In 1 years time
By pixelslave on 7/6/2007 2:02:34 PM , Rating: 2
quote:
what are you doing over there? that's not the trendy part of town! you need to be seen buying an iphone! make sure you use it often on the train, and loudly.


Please explain to me why it's cool when the phone you bought has over 500,000 users in just 3 days. What makes it soooo unique, when the manufacturer expects that by next year, over 10 million people will use the exact same phone.

Isn't being unique, isn't "Think Different" cool? Since when does thinking "the same" become cool?


RE: In 1 years time
By BMFPitt on 7/2/2007 5:32:59 PM , Rating: 3
quote:
Nobody told her until 6PM that this store had a 1 per customer limit
You didn't organize a massive group "HA HA!" for when she figured it out? Slacker.


RE: In 1 years time
By kelmon on 7/2/2007 1:06:53 PM , Rating: 2
I'd take that bet. In 3-days Apple has sold 1/20 of its target for the next 18-months and it's only released the unit in the US. While I'm not convinced that the iPhone could sell 10-million in North America alone, worldwide (assuming the cellular providers are signed up) should not be a problem to hit that target.


RE: In 1 years time
By Oregonian2 on 7/2/2007 2:19:35 PM , Rating: 2
Helps that 10 million is a very very tiny number when one considers that over a billion cell phones are sold every year. They're talking under 1% marketshare even if goals are met.


RE: In 1 years time
By marvdmartian on 7/2/2007 2:59:01 PM , Rating: 4
Well, isn't that the typical marketshare that Apple commands?? Shoot, if they get it up to 2%, they can crow about "doubling our marketshare!!" ;)


RE: In 1 years time
By retrospooty on 7/2/2007 4:41:42 PM , Rating: 3
True, but most of those phones are free. $600 vs free is a large leap.


RE: In 1 years time
By omnicronx on 7/2/2007 5:33:23 PM , Rating: 4
Meh i just laugh when i think of someone buying a phone for 600 bucks... in the end its probably a good thing for everyone else. You know sony.. nokia.. motorola etc.. are going to come out with iphone like phones real soon for a tiny amount of the price an iphone costs. I cant wait to get a good phone in a year or two for free while Ijunkies pay up the ass for theres and give out minimum 1500 dollars a year for service.. HA!


RE: In 1 years time