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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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RE: In 1 years time
By peldor on 7/2/2007 12:17:37 PM , Rating: 2
I don't think Apple will cry (they got paid already) and AT&T will happily accept the contract cancellation fees.

Then the iPhone 2.0 comes out and the whole process repeats, but in more colors.

RE: In 1 years time
By therealnickdanger on 7/2/2007 12:19:12 PM , Rating: 2
... and hopefully for networks with EVDO.

RE: In 1 years time
By HaZaRd2K6 on 7/2/2007 12:38:36 PM , Rating: 2
... and some sort of implementation of an SMS system.

RE: In 1 years time
By jak3676 on 7/2/2007 1:00:47 PM , Rating: 2
They are going to be locked to AT&T (GSM) for quite a while. That was part of the deal that AT&T made with Apple. Apple gets paid - AT&T gets an exclusive.

Bottom line, don't hold your breath for EVDO or a CDMA version.

RE: In 1 years time
By Hare on 7/2/2007 3:03:24 PM , Rating: 2
I believe the European version will have 3G. Every city here has coverage and people demand 3G.

RE: In 1 years time
By FITCamaro on 7/2/2007 3:04:38 PM , Rating: 2
They signed a deal that the iPhone was exclusively locked to AT&T. That doesn't cover other phones Apple will release. Course they'll be just as overpriced.

RE: In 1 years time
By TomZ on 7/2/07, Rating: 0
“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
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