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July 2, 2009 1:12 PM PDT

AT&T breaks sales records with iPhone 3GS launch

by Marguerite Reardon
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(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.

Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie.
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by Splashes July 2, 2009 1:42 PM PDT
I'm in Mr. Osei's corner on this one. There's no bigger Apple fanboie than me -- I'm happy to shell out for top quality. And that's exactly why I don't have an iPhone -- I refuse to give AT&T $70+ per month for mediocre quality.
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by ellebhr July 2, 2009 2:26 PM PDT
I have an iPhone G3 and I totally adore it but definitely AT&T is not up to par, the quality of the calls is terrible, with dropped calls every day. I call my husband who is on my family plan and can't get through to him. I swear that if the iPhone were available on other carriers like T-Mobile I would change in blink. On the bright side I do enjoy being able to use all the wonderful applications but this is thanks to Apple and the wonderful people who are creating these amazing apps.
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by ecotopian--2008 July 2, 2009 2:28 PM PDT
I am a total Apple user, but still haven't bought the iPhone because of my reservations about AT&T. I sure wish it were possible to get an iPhone in the USA without supporting AT&T. Apple would have my money right now.
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by lkrupp July 2, 2009 2:51 PM PDT
For every at&t hater there's an at&t lover. For every Sprint hater there's a Sprint lover. For every TMobile hater there's TMobile lover. And so it goes. So please spare us the diatribes about which carrier is the best or worst and why you won't get an iPhone because of at&t. It's all in the eye of the beholder. They are all ,in the end, the same.
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by ikramerica--2008 July 2, 2009 9:52 PM PDT
Exactly. I've had no dropped calls in the time I've had the 3GS, and call quality is so good that sometimes I think the call has dropped because there is zero background noise. I ask "are you still there?" and they always say yes.

And I was an existing ATT customer, so this is comparing the iPhone to my previous phone.

But that's Los Angeles, where service is good. It varies from city to city, and people just don't seem to digest that. "My experience is the only experience anyone can have!" Hardly.

YMMV. :)
by tavake71 July 3, 2009 12:59 AM PDT
Amen to your comment. I bought the iphone 3G last year because it was the coolest phone. I had Verizon before and had no issues switching to AT&T and to me, I'm getting the same service. As long as I can make calls, I'm good. Now I can surf with my iPhone & AT&T which is icing on the cake. I love my phone and can't wait to upgrade it.
by professionaladventurer July 2, 2009 2:52 PM PDT
Don't really have problems with AT&T but I don't live in regular America. I pretty much stick to going between Alaska and Hawaii. 3G rolled out last month and I just got the iPhone 3G for $99 (yeah I got hooked up by an ATT rep) and it seems a little slow, but otherwise it is ok. No dropped calls really.
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by alawaiblowfish July 2, 2009 6:46 PM PDT
I also live in Hawai?i and don't seem to have any problems with my iPhone whatsoever. In fact, AT&T has the best coverage in the islands, bar none. Verizon is the company with crappy reception issues. Coupled with their horrible customer service and lackluster hardware, I wonder why anyone would choose their services.
by ikramerica--2008 July 2, 2009 9:55 PM PDT
Again, because it varies from region to region, city to city. While ATT was great in Hawaii when I visited, try taking your ATT phone to Santa Fe. Spotty at best, and the mountains are worse, but people say Verizon is the service of choice there.

One day, maybe the whole country will unite under the same 4G network using a lower frequency that is more reliable, and everyone can finally choose companies based on price, phones and customer service only, but until then, we have to trade off too much in some places and can't get what we want.
by canex2007 July 2, 2009 3:27 PM PDT
Iphone is really an amazing gadget but lacking with respect to the very feature I wanted most....a phone can make a phone call. Whhile Iphone 3G keeps dropping calls, my Nokia E71 always starys strong and reliable. Don't blame AT&T. Iphone is the cultprit for the bad receiption.
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by cnetpre July 2, 2009 4:21 PM PDT
So you're suggesting you have both phones on AT&T and that your Nokia E71 stays strong and reliable while your iPhone runs into occasional dropped calls for the same geographic location? If that's true..you could have a point.
by ikramerica--2008 July 2, 2009 9:56 PM PDT
Or a bad phone. Most have not experienced your issue. iPhone is like any other electronics product, and there will be lemons. That's why there is a warranty.
by canex2007 July 3, 2009 10:52 AM PDT
Same location, different results. Mine and my colleagues' Iphones suffered the same issue.

http://www.appletell.com/apple/comment/iphone-3g-has-a-bad-3g-chipset/
by epgomez July 5, 2009 10:06 AM PDT
I agree with you. Me and my wife were in a restaurant. My iphone has no signal but my wife's phone has full bars of signal. That's the time that I got rid of the iphone and bought something else. And there are a lot of restrictions done by apple on the device and also I keep on charging every now and then because the battery sucks which made it so totally unusable when you go outside strolling for a long time away from you car and computer. I don't like this! It's crap.
by pintos-n-cheese July 2, 2009 3:31 PM PDT
Have you heard the possibility of Sprint's business floundering to the point they must sell? And that Apple could BUY Sprint and own their own phone carrier? Think of the possibilities.
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by markredf150 July 2, 2009 4:38 PM PDT
lol that would be a great scene in the next Apple commercial...Sprint's CEO Dan Hesse getting out of that cab (from that commercial we've all seen), and Steve Jobs waiting for him on the sidewalk. Steve rips away Dan's laptop and says you're fired! Then Steve pulls out the iPhone 3G S S (second S for "Sprint") :) ahhh the possibilities are endless!!!
by useful_worms July 2, 2009 4:16 PM PDT
I'm a big Apple Fangirl and I love my iPhone. The worst thing about it is AT&T; any/all problems I have with the phone are due to network issues. When I travel to Europe, no dropped calls and perfect reception. Imagine that!

I justified the expense by getting rid of my landline and using it for business and personal use.
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by lpal730 July 2, 2009 4:30 PM PDT
I would love to have an iPhone. I have tried AT&T, Verizon, Sprint and others, and I refuse to leave Verizon's great connection and call quality. AT&T's network was a dissapointment, too many important business calls dropped. The network is the difference for me.

Waiting for a Verizon/iPhone marriage

P.S. Verizon Android phone a definite possibility
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by steel36 July 3, 2009 5:38 AM PDT
I'm with you on that. I've held out for the iPhone on Verizon so long, that it's given them time to finally launch an Android device, which I'd prefer anyway I think. We'll see if one gets here in the next few months.
by markredf150 July 2, 2009 4:43 PM PDT
AT&T is working on upgrading their network (http://news.cnet.com/8301-1035_3-10271450-94.html)
But we shall see what this madness gives iPhone users
Sure, beefing up the network is a great idea...on paper...but let's see what happens. It honestly sounds like a good idea, because the lower spectrum can go through walls and travel further than the higher spectrum
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by bubbiegeek July 2, 2009 4:55 PM PDT
I recently left Verizon for ATT and an iPhone 3Gs. I couldn't be happier. I have not had a dropped call. The connections are crystal clear. I can actually talk on this phone. Maybe the cheap phones that Verizon was giving out were bad. But I never actually wanted, to or could have a comfortable phone conversation on my Verizon phones. Now I actually want to talk on the phone. I also like the fact that ATT has a family plan of fewer than 700 minutes, and rollover minutes for unused time. I have had to call ATT to correct some billing issues causes when I my husband joined me on ATT. I was able to connect with a real person very quickly. They promptly and politely addressed all issues.. Maybe the ATT wireless network does not have the broad coverage of Verizon, but for where I live and travel it is more than adequate.
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by ikramerica--2008 July 2, 2009 10:00 PM PDT
When comparing plans, people always leave out the rollover minutes. I'd personally take rollover minutes and 9PM nighttime over no rollover and 7PM nights. And the good thing about rollover minutes is that when you have a problem, one of the first things ATT will offer as compensation for your trouble is extra rollover minutes. Costs them nothing, but can save you money. When it took overnight to activate my iPhone 3GS because the SIM card wasn't properly registered, they offered to give me 500 rollover minutes as compensation. I said it wasn't necessary, as some of mine were expiring anyway. Then i looked at my account, and they had added 1000!
by fredropro July 2, 2009 8:05 PM PDT
the dropped calls thing must be everywhere but south Fla..... Ive never had one yet ....Ive owned the 3G since jan 2009
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by ikramerica--2008 July 2, 2009 10:05 PM PDT
The only time I ever get dropped calls is when talking to my brother and he drives over a certain hill in Austin. He's on Sprint. For a long while, my Sony ATT phone did not do well calling Sprint in Austin. Lots of reception issues, especially if he was on speaker. Nobody else has this problem with his speakerphone, and now my iPhone 3GS doesn't, either. That same Sony phone would sometimes have an issue talking to another ATT customer in Florida, where for no reason, they could hear me but I couldn't hear them. Again, the iPhone isn't doing this.

The point? Call quality, reception and dropped calls is regional but also more than simply due to one company. Some people who say "I can never keep a call with XYZ person" might simply have a situation where, for whatever reason, the phones of the two people don't like each other and one or the other phone disconnects part or all of the signal.
by ewelch July 2, 2009 9:11 PM PDT
Verizon sucks, T-Mobile sucks, Sprint Sucks, AT&T sucks. I've seen better service in the mountain passes of Colombia that I see here in the States. So get over it folks. I'm very happy with my iPhone and have very FEW problems with AT&T. Their customer service is WAY better than it used to be when Cingular was a separate company.
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by ikramerica--2008 July 2, 2009 10:01 PM PDT
True, but I've also seen poor reception in France and in Australia with my GSM phone, so it could just be the crappy handsets...
by CyStarkman July 2, 2009 11:03 PM PDT
Australia no problems. Great reception, call quality and network speed. I live in one of the most remote populus places here, 27000 people. The 3G and now the 3GS have been no trouble, even battery life has been comparable to my old nokia and motorola 3G phones and when I consider what I do on the iPhone Compared to them and how big it's screen is, the battery life is actually really surprising.

Not sure what I would do in the USA, but it sounds all pretty scrappy and that's sad. I hope Apple sees fit to make it carrier neutral for u mob like it is here. Actually in oz Apple now sells the iPhone unlocked direct from it's website, maybe the same will happen in the USA.
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by cp256 July 3, 2009 11:00 AM PDT
Nothing could make pay a cent to those AT&T thieves, I don't care how good the freaking phone is. If all the sheeple didn't put up with the telcos C_R_A_P we'd have some choices in this country.
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by CrashPad63 July 3, 2009 11:48 AM PDT
Iphone sucks, why all the fuss? Dropped calls. Overheats and discolors. No true multi tasking. Security like swiss cheese.
PT Barnum was right there is a sucker born every minute. And ole Jobsy knows this!!!
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by Electronic_Dreamer July 3, 2009 10:15 PM PDT
Iphone 3g s customers sheep hearded by apple, no crappy at&t reception, lack of removable battery, discoloration, weak upgrade of battery life,barely adequate camera, and high monthly costs. can keep these ignorant people from buying nope i guess the world is just to ignorant to realize any better.
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by brmarsh July 6, 2009 10:01 AM PDT
I am returning my 3GS. The signal reception is very bad. With other phones I had 3 bars of 3g at my house. With the 3GS I get 1 or 2 bars of Edge. Apple has a problem with this phone. Thousands of people all over the world are having the same problem. Why isn't CNET reporting it? Apple is scrambling to fix it but what if its hardware? Recently out of 30 cell phones at a family reunion, 29 worked. My IPhone 3Gs never found any signal. This isn't AT&T. Its the phone.
Reply to this comment
by brmarsh July 6, 2009 10:02 AM PDT
I am returning my 3GS. The signal reception is very bad. With other phones I had 3 bars of 3g at my house. With the 3GS I get 1 or 2 bars of Edge. Apple has a problem with this phone. Thousands of people all over the world are having the same problem. Why isn't CNET reporting it? Apple is scrambling to fix it but what if its hardware? Recently out of 30 cell phones at a family reunion, 29 worked. My IPhone 3Gs never found any signal. This isn't AT&T. Its the phone.
Reply to this comment
by shores11 July 7, 2009 5:55 AM PDT
I agree that network coverage varies from region to region. My old (Verizon) phone was essentially a brick when I visited family in rural Missouri and Illinois. (I live in Atlanta) I switched to the iPhone 3GS and have had no problems with coverage. For the first time ever - I'm able to check my email on my phone while visiting. Verizon may have better service in some areas, but that V-Cast business was all but unusable as far as I'm concerned.
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