Print 38 comment(s) - last by Fracture.. on Jun 18 at 8:35 AM

Demand is unprecedented, says company

Apple's new iPhone 4 has a lot going for it -- a gorgeous "retina" display that beats even the toughest Android competition in resolution, the addition of multitasking, an improved camera, Apple's new A4 ARM processor, 802.11n wireless, and more.  Those factors and Apple's hot brand image have helped the company overcome concerns about app censorship and security issues, launching it to early records.

AT&T reports to us that it has received a staggering amount of pre-orders since the process opened yesterday.  An AT&T spokesperson writes, "iPhone 4 pre-order sales yesterday were 10-times higher than the first day of pre-ordering for the iPhone 3G S last year. Consumers are clearly excited about iPhone 4, AT&T's more affordable data plans and our early upgrade pricing."

In total over 600,000 pre-orders were placed.

AT&T's webpage reported "13 million visits" yesterday of customers checking if they were eligible for an upgrade -- three times the previous record, according to AT&T.

Those visits helped crash some of AT&T's servers, denying service to many seeking pre-orders.  Some of these customers were able to place pre-orders at Apple stores.

In light of the incredible demand, AT&T has suspended pre-orders indefinitely.  It may reopen the process if its secures more stock, it says.  It writes, "We are working hard to bring iPhone 4 to as many of our customers as soon as possible."

The terrific sales are a much needed piece of good news for AT&T.  The company is contemplating cuts to its Uverse cable television and internet package due to new government restrictions.  And last week it lost 114,000 iPad 3G owners' emails due to lax security, which allowed security experts at Goatse Security to accomplish a simple harvest of emails, which they then offered up to the media.

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By ezinner on 6/16/2010 4:57:31 PM , Rating: 2
I called ATT yesterday and was told to call back again. I logged into my account and was given an error message when checking my upgrade status. Today, I checked via the Apple site and it told me no go on the upgrade pricing. I couldn't find out how much the ETF is and I heard it is going up for new customers. All in all, I am frustrated that I have bought two iPhones already at over $600 along with a contract at $60 to $130 a month for years (with no text plan) and they treat me worse than a new customer!

RE: Argh!
By Gungel on 6/16/2010 5:49:18 PM , Rating: 3
As soon as Verizon or any other service provider gets the go ahead to sell an iPhone, AT&T will be loosing clients by the thousands. They know it too, that's why they introduced early upgrades for current iPhone users.
AT&T screws clients in multiple ways:
1. Lock'em in for two years and jack up the early termination fees.
2. Cap the data at 2GB
3. Charge more for the iPhone service than for any other phone.
4. Reveal customer data to the whole world with bad security and faulty online software.
5. Lackluster 3G service and late 4G service expansion

please feel free to add to that list.

RE: Argh!
By vapore0n on 6/16/2010 7:16:24 PM , Rating: 2
Havent we been hearing this same story for years.

RE: Argh!
By darkblade33 on 6/16/2010 9:26:44 PM , Rating: 3
Ok, first off tell me what company doesn't force anyone into a 2yr contract? Aren't those pretty standard these days?

Secondly, I do have the unlimited data plan, which is nice to know I wont lose it, but for new subscribers - paying 25 a month for 2Gigs - What do you get ??

The people being targeted aren't people like me who send a few hundred emails a month, play Youtube videos maybe 10 mins a day .. and a few news clips.. play online games.. I don't come anywhere near 2Ggigs doing that!

YouTube: When watching a 2-minute YouTube video, 2MB was used ... so if 2GB is 2048MB, one could theoretically watch 17 hours of programming on YouTube before using up all your bandwidth for the month.

My last question is.. if you are going to watch 17hrs of video on an iphone every month .. shouldnt you just invest in a multimedia computer and watch it on 22inch widescreen like most people ? Because the people who need to do this for jobs, not kids at home with no jobs or lives, will have their data plans covered by their employers and/or make enough money that paying 10$ more dollars for another Gig won't be a concern.

RE: Argh!
By darkblade33 on 6/16/2010 9:33:17 PM , Rating: 2
One more last thought.

Hasn't it always been a lesson ( that most people don't learn ) that most policies/laws ( whether corporate, judicial, etc ) which remove or lesson ones person rights, freedoms, choices come into effect when a few people abuse something and new policies are put into place to punish everyone else. Just ask people who have, '5GIG data caps on their HOME high speed internet' service... 5Gigs on a home PC goes much quicker because the mobile web is built for slower networks overall and thus much of the mobile web uses far less data for the same thing. They are paying because 3% of the other people were using 100 plus gigs a month hogging the network.. aka

RE: Argh!
By Gungel on 6/16/2010 10:01:14 PM , Rating: 2
You obviously never connect your notebook through your phone. I'm on the road a lot and tether my phone to my notebook. 2GB are used up in a few days.

RE: Argh!
By Aloonatic on 6/17/2010 5:06:34 AM , Rating: 2
Then you obviously need, or they obviously need to provide, a data plan that takes your heavy usage (over that of the average, far more commonly found user) into account, and pay/charge a premium for the extra traffic that you require, rather than expecting everyone who wont come close to using it to share the burden with a standard tariff.

When you pay the ludicrous tethering fee, does that allow you to download more? Or does it simply let you connect it to your PC/Laptop?

RE: Argh!
By Alexstarfire on 6/17/2010 12:25:48 AM , Rating: 2
Not sure if you're talking about a phone or a laptop, but a 2-minute YouTube video certainly isn't 2 MB on an actual computer.

The biggest issue I think is that you pay for tethering, but don't really get anything. Paying $20 a month to unlock a feature that's already built-in to the hardware is the biggest profit margin in history, 100%. It's pure profit.

RE: Argh!
By darkblade33 on 6/17/2010 11:21:12 AM , Rating: 2
Im talking about youtube on an iphone.. as I was saying the cellular internet uses far less data.. youtube video & news clips from CNN over 3g ( for example ) are much smaller then videos over fiber optics ( like RR uses in my area ) from your cable company.. 2Gigs on a cellular phone is like 10Gigs on a PC because the internet uses far less data, they use less pics and those pics are smaller in data size, the videos are smaller in data.. etc..etc..

RE: Argh!
By hughlle on 6/17/2010 5:19:02 AM , Rating: 2
i could easily watch 17 hours of youtube a month on my phone. if i wake up early andi cant' get back to sl;eep because of the sun and i'm not in the modd to get 5am active, an hour of mythbusters is just the ticket. i'll also watch maybe 45 minutes of youtube in the form of music (beardyman etc) while having a smoke and a drink. 2gb is nothing raelly.

RE: Argh!
By darkblade33 on 6/17/2010 11:27:35 AM , Rating: 2
Your point seems pretty moot to me.

If im home my wi-fi is on - so you're not even using data off 3g .. its running off your home broadband... I mean doesnt about everyone have a wi-fi router ? they are 30 dollars now and if you cant afford that then please don't pay for a data plan instead.

If i wake up early and can't go to sleep I do the smart thing and sit down at my pc, and if i dont want to get out of bed i turn my 22 inch pc monitor towards the bed..

..Or better yet - I go into the living room and watch my 60 inch.

RE: Argh!
By darkblade33 on 6/17/2010 11:31:43 AM , Rating: 1
Furthermore, if you're at home.. you would want to run your iphone off the wireless instead of 3g.. If do this you can watch videos all day long without worry.. plus you'll notice the high quality videos on youtube run when you're using wireless and not the shitty low-rez runs for the 3g network. My instinct tells me you don't even own an iphone.

RE: Argh!
By EJ257 on 6/17/2010 9:32:56 PM , Rating: 2
The lawyers among you can correct me on this one if I'm wrong. Doesn't the fact that they jacked up the early termination fee for current subscribers effectively void their contract? When they signed the contract it was $175 for early termination fee which goes down each month you stay on the contract.

RE: Argh!
By FATCamaro on 6/16/2010 6:20:38 PM , Rating: 2
You signed a contract right? Would it be so difficult to live up to it?

RE: Argh!
By Samus on 6/16/2010 7:21:27 PM , Rating: 2
But how could such a large, powerful telecom as AT&T not predict this and have a suitable website/network for the onslaught?


RE: Argh!
By Uncle on 6/16/2010 7:50:55 PM , Rating: 2
Because Americans are being trained to except less, after AT&T is found out, Americans shrug their shoulders and go OH OK I will just put up with slower speeds. Last thing Americans will admit to is that they bought an expensive toy and can't use it the way it was meant to be used . Can you imagine the broadband speed if AT&T geared up for the Iphone. A couple of hot spots and they can say that not everyone is having problems.

Look over there...
By Suntan on 6/16/2010 4:39:42 PM , Rating: 5
[Sees AT&T cell tower trembling in fear...]


RE: Look over there...
By Proxes on 6/16/2010 4:46:29 PM , Rating: 5
See any Foxconn workers on it ready to jump?

RE: Look over there...
By Quadrillity on 6/16/2010 5:35:42 PM , Rating: 2

RE: Look over there...
By ElderTech on 6/16/2010 8:16:31 PM , Rating: 2
Unlike other frustrated customers, while attempting to order one for a renegade family member who succumbed to the dark force of Apple, I persisted and ended up spending about 5 hours online and in a north suburban Chicago area AT&T company store. Fortunately, at the very end of the day, a most dedicated store rep was able to successfully push through my order, which was one of the last accepted from the store at about 11 PM local time. I applaud his work ethic, and customer service dedication, and frankly that of the entire store including the manager.

While I was there, I never saw any store personnel respond negatively to a customer, or fellow employee. They continued a positive attitude that was maintained in spite of their computer system being down essentially from 11 AM until store closing at 9 PM. During this time, they were lucky to put through only a small fraction of pre-orders, and recorded the rest manually for later input. This system crash also obviously had a terrible impact on their normal business transactions.

It was only after closing that the system came back up but still only intermittently. And before midnight, even the manually logged orders were no longer being accepted and all pre-orders were suspended. From the news releases today, it's evident AT&T and Apple grossly underestimated the potential demand and as usual didn't prepare enough computer resources for the task at hand. It's a shame, since the physical resources of store personnel and other employees seemed to be available and ready to do it. But in today's business environment, you can't perform the customer service task without the technical resources being available. That seems to be AT&T's achilles heel lately, and to some extent Apple's.

RE: Look over there...
By Suntan on 6/17/2010 10:22:04 AM , Rating: 2
Friendly customer service is just expected. But that doesn’t get a company any points other than an instant “I’ll never do business at that store again” attitude.

FWIW, I had very friendly service a couple months back when I updated to my Smartphone (not at ATT) they were very friendly and courteous during the 15 minutes it took for me to get the phone, have them transfer all contacts etc. and make sure it was properly setup.

Quite frankly, there is no consumer product on the face of the earth that would make me dicker around for 5 hours to buy (let alone to get put on a waiting list) and no CSR could be nice enough (without breaking a couple of vice laws) to keep me interested for that long. Obviously there are a lot of people that would rather spend 5 hours like that then wait an additional 2 weeks after it actually releases to walk into a store and then be able to walk out of the store, but it just sounds ludicrous.

Whether it is continued incompetence on the part of Apple/ATT or an intentional marketing strategy to generate “buzz,” having your systems continuously crash while trying to take customer’s orders is unacceptable. What’s more, praising the company for “how well they handled the situation” is sad.


RE: Look over there...
By Omega215D on 6/17/2010 2:48:54 AM , Rating: 2
Chuck Norris bought an iPhone?

RE: Look over there...
By mostyle on 6/17/2010 5:44:54 AM , Rating: 2
Chuck Norris doesn't need an IPhone.. He beams telecom signals directly from his brain to the towers..


Record 600,000 iPhone Pre-orders Placed
By Talcite on 6/16/2010 5:22:48 PM , Rating: 5
That's a lot of wool.

By iLLz on 6/16/2010 5:39:59 PM , Rating: 5

By Suntan on 6/17/2010 10:08:01 AM , Rating: 2
That made me chuckle, thanks.


13 mil site visits...
By esoteric01 on 6/16/2010 4:49:23 PM , Rating: 3
isn't as impressve as it sounds when each person trying to refresh their way though att's crippled site probably racked up 1000 visits.

RE: 13 mil site visits...
By The0ne on 6/16/2010 5:23:01 PM , Rating: 2
hahaha +1 to you for making my day :D

RE: 13 mil site visits...
By XZerg on 6/16/2010 5:39:50 PM , Rating: 2
or hackers/burglars went nuts when it was announced ATT gave out all the account info...

RE: 13 mil site visits...
By acase on 6/17/2010 10:41:50 AM , Rating: 2
Or if you were like me and just seeing when you could finally switch to a different network to get away from all these idiots.

RE: 13 mil site visits...
By Fracture on 6/18/2010 8:35:28 AM , Rating: 2
I don't know which way Apple will take this - either that:

1) The leaks about the phone actually garnered interest and helped
2) The more people that die for an iteration of the phone, the better the sales.

I'll bet on the latter.

Obligatory english usage Nazi comment
By zozzlhandler on 6/16/2010 4:41:20 PM , Rating: 1
I'm guessing you mean "...In view of the incredible demand..."
rather than "...In lieu of the incredible demand...".

You might wish to fix that...

RE: Obligatory english usage Nazi comment
By paydirt on 6/16/10, Rating: 0
By wiz220 on 6/16/2010 4:54:44 PM , Rating: 2
In lieu Definition:
Instead of, in place of.

I don't see how that fits in the article. I think OP is right on this one.

By C'DaleRider on 6/16/2010 9:50:51 PM , Rating: 2
Worse than correcting is trying to correct incorrectly. Learn English and try again.

By Shadowself on 6/16/2010 6:12:44 PM , Rating: 2
And last week it lost 114,000 iPad 3G owners' emails due to lax security, which allowed security experts at Goatse Security to accomplish a simple harvest of emails, which they then offered up to the media.

What was exposed were the email ADDRESSES and id codes. The actual emails were NOT exposed. The actual emails were NOT lost.

While this is horrific in and of itself (and AT&T sould be bashed repeatedly for this -- and Apple should be severely chastized for sticking by AT&T as an exclusive carrier), the actual emails were not exposed. No one's email from this fiasco has been obtained or published.

By aoskunk on 6/17/2010 8:02:12 AM , Rating: 2
When I read that I understood exactly what he meant. If I asked you for your e-mail you would say "". You wouldn't ask "what e-mail? from who?". They "lost 114,000 iPad 3G owners' emails due to lax security" is exactly what they did. Sure you could miss interpret it, but its not inherently wrong. Were you the one who complained about the same thing in the last article?

By Alphafox78 on 6/16/2010 5:21:00 PM , Rating: 2
I just checked, you can still pre-order from apple. I think ATT must only get a certain number of units so they dont want to use all of them up on preorders. if you do pre-order from apple it says you wont get the phone till July 2nd or later now tho. that sucks

“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith

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