(Credit:
Apple)
The first day the Apple iPhone 3GS went on sale was the biggest sales day ever for AT&T, according to an internal memo sent to company employees that has since been published in various blogs.
That's right, iPhone Day 2009 beat out the two previous iPhone launch days, as well as surpassed traditionally heavy retail sales days such as Black Friday, the day after Thanksgiving, and December 26th, the day after Christmas.
The new iPhone may not have added a whole bunch of new bells and whistles, but it seems to have certainly been a crowd pleaser. It took Apple and AT&T about two and half months to sell one million phones. The iPhone 3GS hit that milestone in just the first weekend.
But it's hard to say for sure how many iPhones have been sold to date. Apple won't divulge sales figures until later this month when it reports its quarterly earnings. And AT&T has only said that it sold "hundreds of thousands" of iPhones during its pre-order process. But the company has indicated that iPhone 3GS sales were off the charts.
Of course, I may have found the one guy who went to an AT&T store to buy something other than an iPhone. Collins Osei, who had bought an iPhone 3G last year, came to the AT&T store on iPhone launch day not to buy the iPhone 3GS, but instead he wanted to downgrade to a less expensive Nokia phone.
Apple on Friday upped its stake in U.K. chip company, Imagination Technologies.
The company purchased 2.2 million shares at 1.43 British pounds ($2.36), for a total cost of 3.14 million pounds ($5.19 million). The purchase brings Apple's stake in the company to 9.5 percent, effectively tripling its ownership in Imagination, according to a report on MocoNews.
Apple uses Imagination's SGX GPU in the recently released iPhone 3G S, allowing it to have much better graphics using Apple's OpenGL ES 2.0, according to AppleInsider. Samsung is reportedly integrating Imagination's technology into system-on-a-chip devices.
OpenGL ES 2.0 is a cross-platform API that allows for 2D and 3D graphics on embedded systems. IT essentially creates a low-level interface between the software and graphics hardware system.
AT&T is upgrading its network and using 850MHz spectrum to beef up its 3G wireless network, which should help alleviate dropped calls and slow network connections for iPhone 3G and iPhone 3G S users.
Apple said this week that it sold more than a million of the iPhone 3G S model worldwide this past weekend after the phone went on sale Friday. Exactly how many of those phones were activated on AT&T's network in the U.S. isn't yet known, but the addition of more data intensive iPhones is likely to put a strain on the carrier's network.
That said, AT&T spokesman Mark Siegel told the blog Gearlog on Tuesday that the company is ready for the onslaught of new iPhone users. One of the things it has been doing to prepare is upgrading its network so that it can offer 3G wireless service using its 850MHz spectrum licenses. For the most part, AT&T has been using spectrum in the 1900 MHz band to deliver its 3G services, which have become saturated, Gearlog explains. This means that as AT&T sells more 3G devices, such as the iPhone, it has been cramming more users into an ever more crowded spectrum band.
This could explain why some users have complained of dropped calls and slow Net connections using the iPhone 3G, an issue that CNET News pointed out nearly a year ago after the iPhone 3G was launched. The problem has been particularly acute in large cities, such as New York and San Francisco, where there is a concentrated base of iPhone users and where the 1900MHz spectrum is predominant.
Siegel says that upgrading equipment to allow AT&T to use its 850MHz spectrum for 3G services should help relieve some of the congestion issues. Because the 850MHz spectrum is at the low end of the frequency band, it is able to travel longer distances and penetrate walls more easily than signals on the 1900MHz band.
When asked about problems with dropped calls for iPhone 3G users a year ago, Siegel told CNET News that the company had been working to expand the portion of its 3G network that runs on the 850MHz band. Back then he downplayed the need for adding 850MHz spectrum for 3G services by saying that it "doesn't mean you can't get a good experience on 1900MHz."
Now Siegel thinks that adding 850MHz will make a big improvement, according to the Gearlog story.
"The 850, when it's turned on in individual markets, people notice a big difference," he is quoted as saying.
In addition to adding 850MHz 3G service, AT&T has also been making other improvements to its network, such as upgrading to the next iteration of HSDPA technology, which is expected to double download speeds on AT&T's network.
Apple is reportedly offering iPhone 3G S buyers a $30 iTunes Store credit for activation delays.
(Credit: Apple)
iPhone 3G S buyers are still experiencing delays activating their new smartphones, but Apple apparently wants to make it up to them.
Apple began notifying affected customers via e-mail on Sunday that they may experience additional delays for another two days due to "system issues" and "high activation volumes," according to readers in various blogs who claim to have received the e-mail.
The problems began immediately after the new iPhone's launch Friday.
As a way of apology for the delays, the same e-mail said Apple plans to offer customers a $30 credit iTunes Store credit for "the inconvenience this delay has caused."
Here's the entire text of the e-mail:
Dear Apple Customer,Thank you for your recent Apple Store order. We appreciate your patience and apologize for the inconvenience caused by the delay in your iPhone activation.
We are still resolving the issue that was encountered while activating your iPhone with AT&T. Unfortunately, due to system issues and continued high activation volumes, this could take us up to an additional 48 hours to complete.
On Monday, you'll receive an email from Apple with an iTunes Store credit in the amount of $30. We hope you will enjoy this gift and accept our sincere apologies for the inconvenience this delay has caused.
Thank you for choosing Apple.
Sincerely,
Apple Online Store Team
Apple representatives did not immediately respond to requests for comment.
During last July's iPhone launch as new customers tried to complete the required in-store activation process, overloaded AT&T activation servers slowed Apple Store lines to a crawl, and the servers eventually crashed altogether. Apple soon ditched the in-store activation and was simply "unbricking" phones, letting buyers activate them at home rather than hold up the line because of crashed servers.
In stark contrast to the frenzied first day sales of the original iPhone and last year's iPhone 3G, Friday's launch was marked by considerably smaller and quieter crowds for the smartphone's debut.
One analyst expected Apple to sell 500,000 iPhones this weekend. That's half as many phones as Apple sold when it launched the iPhone 3G, but Apple sold that phone in 21 countries on the first day. In comparison, the iPhone 3G S was sold in only eight countries on its first day.
While it would certainly be wrong to call the issue widespread, some iPhone users have reported delays while trying to activate their new iPhone 3G S.
CNET's own David Martin tried to activate his iPhone today and had to call AT&T customer support. AT&T customer service reps couldn't explain what the problem was, but it surely has to do with the number of people trying to activate their phones all at once.
For some users, iTunes is reporting that it could take up to 48 hours to complete the activation process. From experience, I know that this is a standard message. The "up to" part is the key. It could be done in an hour, there is just no way to tell.
The problem is not new, nor unexpected. During an iPhone launch day, tens of thousands of people around the country all try to activate their iPhones, which generates an incredible volume of attempts on the AT&T servers.
AppleInsider and other blogs around the Web are reporting similar scattered issues.
However frustrating for the users it's happening to, this year's activation issues are nothing like the server meltdown AT&T suffered from the previous two iPhone launches.
Smaller crowds line up for iPhone 3G S on first day
The turnout is noticeably less frenzied and the activation problems that plagued last year's iPhone 3G launch appeared a thing of the past.(Posted in Apple by CNET News staff)
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At Apple and AT&T stores in Manhattan, eager first-day buyers of the iPhone 3G get their hands on Apple's upgraded smartphone first thing Friday morning.• The iPhone 3G S arrives
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iPhone 3G S hits stores Friday: Will the crowds follow?
This year's launch of the latest model iPhone could be different since many people are not yet eligible to upgrade their phone through their carrier.• Analyst expects 500,000 iPhones sold this weekend
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iPhone 3.0 a cut-and-paste win for Twitter
Almost no one else will see a bigger boost from the most-heralded feature in the new iPhone OS than the hit microblogging service.(Posted in Geek Gestalt by Daniel Terdiman)
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AT&T loosens its iPhone 3G S upgrade policy
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CNET Review: Apple iPhone 3G S
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June 17, 2009 10:00 AM PDT
First iPhone 3G S buyers emerge from New York's Fifth Avenue Apple Store.
(Credit: Caroline McCarthy/CNET)SAN FRANCISCO--What a difference a year makes.
Apple released its third-generation iPhone Friday, but considerably smaller and quieter crowds came out for the smartphone's debut. It was a stark contrast to the frenzied first day sales of the original iPhone and last year's iPhone 3G. Friday's lines outside stores across the country were reportedly 100- to 200-people deep in some places, falling short of the lines that sometimes stretched for blocks in 2007 and 2008.
Also different this year was the activation process for new phones. Both Apple and AT&T's servers appeared to hold up much better this year, with many buyers Friday morning reporting quick, easy transactions. After just an hour, folks lining up outside Apple and AT&T stores in New York City, San Francisco, and Emeryville, Calif. were filing into the stores in an orderly manner, with no brawls breaking out over line-jumping or the headache-inducing activation problems of last year to be found.
The relatively lower turnout in the early morning wasn't really unexpected. Both Apple and AT&T offered a few more options for purchasing the 3G S this year that appeared to reduce the chaos--offering preordering and the ability to reserve iPhones for in-store pickup. Some customers who may have wanted a new phone are not yet eligible for an upgrade from AT&T unless they want to pay a hefty "early upgrade" fee, and for others, the 3G S isn't that much of an improvement over the 3G model released last year.
... Read moreNEW YORK--Collins Osei, who had bought an iPhone 3G last year, came to the AT&T store Friday not to buy the latest-generation iPhone 3G S, but instead he wanted to downgrade to a less expensive Nokia phone.
Nokia 2600
(Credit: CBS Interactive)Osei said his decision to go back to a basic-feature phone was all about cost. The iPhone and its service plan are simply too expensive, he said. Osei, who is in the middle of his two-year contract with AT&T, had his iPhone 3G stolen recently. But he said replacing it with a new one would cost too much. Instead, he picked up a Nokia 2600 for a mere $43.
But Osei's decision didn't hinge just on the upfront cost of the phone. He also said he was tired of paying the additional $30 a month data charge that is mandatory with the iPhone.
"The iPhone plan was just too expensive," he said. "They made me pay $30 extra a month for data, and I don't really need the Internet on my phone. So I went back to a regular phone. And now I'm on a plan that costs $39.99 a month."
Osei might not be the only consumer out there turned off by the high cost of the iPhone service fee. Unlike previous iPhone launch days, there was no line of people this morning waiting outside the AT&T Time Square store hoping to get the latest iPhone 3G S. In fact, it looked like more customers were leaving the store empty-handed or with other devices than those leaving with new iPhones.
... Read moreApple's newest iPhone went on sale Friday, and while there weren't the throngs of buyers lined up for blocks in all locations as was the case for the iPhone 3G a year ago, there was plenty of activity as the 7:00 a.m. sales start drew near in each time zone.
And the first buyers now have their hands on the iPhone 3G S.
CNET's Caroline McCarthy and Marguerite Reardon are reporting live from several retail locations in Manhattan and say that the crowds grew throughout the morning. When the store opened, Apple Store employees were letting about 10 people at a time in to buy the iPhone and complete the activation. In the San Francisco Bay Area, Erica Ogg, Josh Lowensohn, and James Martin are also keeping tabs on iPhone sales.
It was a bit of a different story across the Atlantic. iFixit's Kyle Wiens flew to London for the opening and was amazed at the number of people lined up there.
"I knew that Apple puts their retail stores in high-traffic locations, but Regent Street is ridiculous! So many people, it's almost scary," said Wiens.
Wien's iFixit has already disassembled the iPhone 3G S and has pictures posted on his Web site. Rapid Repair also has pictures posted of its teardown process after getting its new iPhone.
Meanwhile, the line at the Knoxville, Tenn., Apple Store seemed very orderly first thing this morning, according to TUAW.
Macworld reports a long line in Arlington, Va., as the crowd at the Apple Store there wound its way along the back of the mall. Overall, lines seem to be moving quite quickly throughout the U.S.
Unfortunately, the same cannot be said north of the border, in Toronto. iLounge reports that Rogers Wireless is having difficulty processing orders, so Apple can only help customers with new activations at this point.
Nobody really expected the iPhone 3G S lines to be as chaotic as those for the first iPhone or for the iPhone 3G, but the volume of business has seemed respectable in the early going. Apple and AT&T did a lot of planning, allowing customers to pre-order the iPhone online in the hopes of avoiding any launch day disasters.
Piper Jaffray's senior analyst Gene Munster expects Apple will see 500,000 iPhones this weekend alone. The iPhone 3G S goes on sale in eight countries today including Canada, France, Germany, Italy, Spain, Switzerland, the United Kingdom, and the United States.
CNET will keep you updated throughout the day on our live blog.
Updated 8:32 a.m. PDT: Added information from Arlington, Va. and Toronto.
The rolling rollout of the iPhone 3G S is under way. Apple's latest iPhone has been going on sale Friday at 7 a.m. local time in each time zone where it's available.
We've got a team of people covering the launch. In the East, CNET News' Caroline McCarthy and Marguerite Reardon are reporting live from Apple and AT&T stores in Manhattan. Out West, Erica Ogg, Josh Lowensohn, and James Martin are keeping tabs on iPhone sales in the San Francisco Bay Area.
Are people lining up the way they have for past iPhone launches? Is the phone everything they expected it to be? Does it really take just 10 to 15 minutes to get set up? Tune in and find out as the day goes along.
... Read more
