iPhone 3G sales brisk
Glitches irritate customers who waited for hours
By Jeff Smith, Rocky Mountain News (Contact)
Published July 11, 2008 at 5:02 a.m.
Updated July 11, 2008 at 10:33 p.m.
Photo by Judy Dehaas / The Rocky
Jeremy Frank, of Highlands Ranch, gets the feel of the new iPhone 3G, which went on sale around the country on Friday.
Photo by Judy Dehaas / The Rocky
Bryan Davis, center, concierge at the Apple Store at the Park Meadows mall, talks with Ivan Hill, of Greenwood Village, about which new iPhone 3G to buy.
Do you plan to buy a new iPhone?
"IPhone Friday!" AT&T employees screamed at 8 a.m. Friday as they opened the doors at The Vistas store at Park Meadows.
At the nearby Apple store, the black velvet curtain covering the windows came down and employees hollered as if a Hollywood star had emerged. One employee dyed his hair orange to match the T-shirts employees wore for the occasion.
The iPhone 3G was quite a consumer hit. But it strained customers' patience, as server issues and software glitches slowed order processing and in many cases prevented activation.
A spokesman for AT&T, the exclusive carrier for the iPhone in the U.S., said Friday morning there was a global problem with Apple's iTunes servers that prevented the phones from being fully activated in-store, as had been planned.
Instead, employees told buyers to go home and perform the last step by connecting their phones to their own computers, spokesman Michael Coe told The Associated Press.
"It was a mess," said Sam Masiello, of Brighton, who works in e-mail security. He was the first in line to buy an iPhone at the AT&T store at The Vistas store, but said he wasn't able to fully activate his phone for calls and other functions until midafternoon Friday. "Overall it went OK, because they got it rectified. But it could have been better."
And while sales were brisk, customer traffic didn't quite match the surge of iPhone's launch last summer. Then, many customers camped out the night before in front of Apple and AT&T stores. The waiting line as the doors opened ranged from 40 to 150 customers, depending on the Apple or AT&T store.
The newest iPhone runs on a faster, third-generation wireless network and includes a GPS (global positioning system) chip and better e-mail applications. Apple also slashed the price by $200. An eight-gigabyte model goes for $199, while a 16-gigabyte device sells for $299.
Cost savings, however, are offset over the life of a two-year contract because AT&T, the exclusive carrier, has increased the price of its voice and data plan from $60 to $70 a month.
But iPhone fans didn't seem concerned by that Friday, and AT&T metro-area stores sold out their allocation before 11 a.m.
At the Apple store at Park Meadows, more than 120 people were in line throughout the morning and afternoon.
Most customers were patient, but some were frustrated that orders took so long to process and that activating the phones was problematic.
"It's taken six people this long to get out of the store with a bag in their hand," complained Irene Butterman, of Lone Tree, at 9:30 a.m. "We got here too early (6:30 a.m.) and not early enough at the same time, if that's possible."
"They have provided Starbucks and water," said Sara Spanjers, of Tucson, who was in Colorado to attend a wedding.
Jace Barbin, AT&T's general manager for the Rocky Mountain region, said Apple server capacity also was an issue, and capacity was being shifted from other parts of the world to meet demand.
By 10 a.m., transactions appeared to be going faster. Customers reported taking five minutes to two hours to complete their orders.
"When you get a connection (on the computer), it's efficient," said Kevin Reddy, whose daughter Megan got a phone. "I think you have to expect it when something is in as high demand like this." He said it took them 45 minutes to complete the transaction.
Butterman wasn't so happy when she left the store. She said she couldn't activate her phone and would have to do so from home.
David Okimoto had been in line for three hours and still had a bit of wait to go. He said he was there for the duration.
"I have no choice. I must have that phone," said Okimoto, a consultant from Aurora who had rescheduled meetings to free up his day. He said he was getting an upgraded iPhone for his wife. And he was replacing his Samsung BlackJack phone with an iPhone 3G.
By midafternoon, more than 100 people were still waiting at the Apple store at Park Meadows.
Kimberly Grimshaw, Apple store manager, said she couldn't speak to the technical problems.
"It's very specific to the individual" and the complexity of the transaction, she said. For example, she said, transactions were taking longer for customers eligible for discounts from AT&T.
"But they're having a good time," Grimshaw said of the customers. Apple supplied free Starbucks and bottled water, while some mall food vendors delivered free muffins and pizza.
Customer buzz
Shane Norris, of Highlands Ranch: "I'm a little surprised the line is this long for the second generation," he said as he waited outside an AT&T store at Park Meadows.
He said he wants the iPhone for the "portable Internet" and doesn't see the $70-a-month contract as being too pricey. "I'm paying $55 a month (now) for a regular phone" with Internet-browsing capabilities.
Elyse Biggs, of California: She said she was attracted to the first-generation iPhone but decided to wait. Since then, she's noticed how pleased her colleagues have been with theirs, and she's excited about the Internet speeds and enhanced applications of iPhone 3G.
"I'm a big Apple fan, so I'm sure I'll be happy."
Sam Masiello, of Brighton, who works in e-mail security, was the first to arrive at the AT&T store at The Vistas, at 4:45 a.m. Friday.
He said he wanted an iPhone "mostly for the faster speed. And the price is very attractive. It's going to be a great competitor to the BlackBerry."
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July 11, 2008
6:29 a.m.
Suggest removal
Vector049 writes:
Toys.
July 11, 2008
7:53 a.m.
Suggest removal
cooperjtd writes:
MarineGrunt: Did you know you cannot buy things from the Apple store with cash. It HAS to be a Credit Card. That way they have your info..
That is one of the most disturbing things I've heard (although I heard it before, but I thought the guy was just b.s.) I wonder how that is possibly legal for them not to accept cash considering it is the US currency and all. It also shows the shocking progression to a cashless society.
July 11, 2008
8:34 a.m.
Suggest removal
surferon writes:
Wow, I guess the economy can't be all that bad if people are lining up for a $200-$300 phone when you can get phones a heck of a lot cheaper.
July 11, 2008
9:53 a.m.
Suggest removal
Who_Me writes:
This is from the link about the guy who died? Related to iPhone, I guess.
July 11, 2008
10:35 a.m.
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MileHighCritic writes:
Once again the iSheep line up and believe everything Steve Job's selling.
July 11, 2008
10:38 a.m.
Suggest removal
SteveM writes:
Hmm, I wasn't aware that you could sign up for any cell phone service without surrendering your SSN? Meanwhile, why'd you want to carry around $200-$300 in cash? Who does that anymore?
July 11, 2008
10:53 a.m.
Suggest removal
benn writes:
yawn - more free advertising for Apple. Too bad my company doesn't get free adspace everytime we launch a new audit.
July 11, 2008
11:11 a.m.
Suggest removal
walker3317 writes:
dont hate on the iphone... its a great phone by apple and looking at what apple has done for the tech world is amazing. The only problem i have is that they force you to sign a 2 year contract and you have to go to an apple store or at&t store... ill wait untill you can purchase the phone by its self, untill then, ill be fine with my 3g blackjack
July 11, 2008
11:36 a.m.
Suggest removal
dummas writes:
sheep with money to burn..baaabaaaabaaaabaaaa
July 11, 2008
12:01 p.m.
Suggest removal
Ottis writes:
The really sad thing is that none of the people buying the phone seem to have actually compared its capabilities to anything else and decided it was the best deal. Instead they all "love Apple" or think "it's cool." The one guy who said the iPhone was a "superior user experience" wasn't asked or didn't say what he meant. The lady from California cited as her "research" how pleased other people have been with their iPhones. I know a guy who loves B&W TV. Should I go buy one?
July 11, 2008
12:40 p.m.
Suggest removal
Buckwheat writes:
I use my credit card for emergency purchases and the occasional dinner out. Other than that, its' cash or check. I guess there are electronic enthusiest (sp sorry) that have to have the latest Ipod or Xbox/Playstation or whatever. Saves me alot of money because i am not, but to each their own.
July 11, 2008
12:55 p.m.
Suggest removal
SockRayBlue writes:
I've read a lot about SS numbers, 200-300 bucks a'phone, second rate internet provider, credit card only--no cash. So why is it popular? Does cool give way to personal security? Once again the public is sold on an imperfect service...like cellphones. I'd rather have a massive return of pay phones owned by ONE company that charges ten cents.
July 11, 2008
1:10 p.m.
Suggest removal
danirobi writes:
Meh, I'm sticking to my blackberry.
July 11, 2008
1:17 p.m.
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andybosselman writes:
No more updates? Keep 'em comin'! (Perhaps head to Cherry Creek / central Denver?)
July 11, 2008
3:24 p.m.
Suggest removal
edge01 writes:
FYI, the apple store does take cash, you just have to go to the front counter. other than that the staff can all check anyone out, anywhere on the sales floor via cc, debit card, or gift card which is actually quite convenient.
however you cannot pay cash for the iphone 3G due to AT&T requiring a credit card for the service. however apple has gotten around this by having the ability to provide you with a gift card in exchange for cash which AT&T will accept. i don't know the details but it's likely tied to the subsidy that is being provided to bring the hw price to the buyer down. so, if you must pay cash, just let the staff know and they will assist you.
July 11, 2008
3:45 p.m.
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surferon writes:
I think part of the reason for the CC only is that ATT wants to be able to tie you into a contract since they are subsidising (sp?) the phone. They don't want people to buy one and then turn around and sell if off on ebay so someone can hack it and use if for another service.
July 11, 2008
4 p.m.
Suggest removal
Jackieg218 writes:
I just think that it's NUTS to pay that much for a cell period. I have the original FREE phone I got with my plan 3 years ago, It rings.... I answer it.... I call out... it reaches people. It doesnt do my laundry, walk the dog, cook dinner etc, I guess you can say its a brick of a cell phone, but you know what, it works.... its a PHONE for Godness sakes. Plus I can cancel service atr anytime, I dont have a contract and hubby, myself and kiddo all have a phone and its 79.99 a month for ALL of us. Looks like people have lost the idea of what a PHONE is.
July 11, 2008
10:37 p.m.
Suggest removal
Uno writes:
Well, the iPhone 3G is a pretty cool device, now you can surf the internet faster while driving and at work, built-in GPS with Google earth because everyone is lost, find the nearest Starbucks just to find out they closed down, and keep in touch with family and friends you ignored when they where standing right next to you, because you where busy talking on the phone with others. Yup, Apple is a smart company, they know how to sell you the phone, than sell you more music and movies and TV shows. ITunes is Steve Job’s cash cow and you’ll love it. Then when money runs short you can complain about gas, utilities and food prices and Bush. Because everyone has their priority in the right order.