iPhone shortage hits NYC

Update: As of 4 p.m. EDT there was no line outside the Apple store on Fifth Avenue here. Then again, there weren't any iPhones left to buy either.

NEW YORK--Early on Thursday, Engadget reported that a 60-person line had formed outside the store. But by the afternoon, the line had dissipated and the store was buzzing with its usual crowd of shoppers. (Having lived in New York City for over 10 years it never ceases to amaze me how many people don't seem to have a job and shop all day.)

Outside Apple's Fifth Avenue store.

(Credit: Marguerite Reardon/CNET Networks)

A store greeter confirmed a line had started forming outside the store around 2 a.m. Thursday. Why you might ask? After all, the flagship store on Fifth Avenue, which sits under a massive glass cube, is open 24 hours a day.

Apparently, people were waiting for a shipment of iPhones. And once the phones were gone, so was the line.

Nearly a year after the phone hit the market, Apple is struggling to keep them in stock. For weeks, news outlets have reported that some Apple retail stores have experienced iPhone shortages. An Apple spokeswoman confirmed that the online store in the U.S. and the U.K. has been sold out of iPhones for two weeks so far. But customers in France, Germany, Ireland, and Austria may still be able to get them online.

The Apple employees I spoke to at the store on Fifth Avenue said they've noticed a sharp increase in demand for iPhones in the past few months. And lines have been forming outside the Fifth Avenue store almost every time the store gets a shipment of new iPhones.

A potential iPhone customer plays around with the iPhone at the Apple store on Fifth Avenue.

(Credit: Marguerite Reardon/CNET Networks)

Of course, this supposed shortage comes just as rumors ricochet through the blogosphere that the company will be introducing a new 3G version of the iPhone June 9 at Apple's World Developers Conference. So it seems a bit strange to me that people would actually stand in line overnight for the old version, which operates on a painfully slow data network, when the much faster 3G version is going to be in stores within a month.

But perhaps, the impending launch of the 3G iPhone is causing the shortage. Apple may be reducing manufacturing volumes of the older version of the phone in anticipation of the new version.

This is all speculation at this point. Apple is keeping mum about any rumors of the 3G iPhone. And the only thing the company has said about the shortage is that, "customer response continues to be off the charts."

[Mr. Dee]

There are a number of possible reasons for this:
- A bunch of old PowerPC Mac users going through momentary insanity.

- Trying to spite Apple by getting the 2G before Apple dupes them with the 3G first gen then drops the price in the fall like the did with the first gen last year.

- Nostalgia, persons want to claim to own the very first, first gen iPhone.

- Simply bored!

[Galaxy5]

I'd think that a more likely scenario for the line is that Apple Store employees have a lot of friends; a shipment came in this morning, and before you know it, all of those friends with pent-up demand were lined up to buy one of the phones in the shipment.

[Thomas, David]

I think it's insanity, and I am an avid Apple enthusiast. But every Apple user would know to wait until after the announcement. Well, at least every Apple user who has owned a computer from them within the last two years, or more.

[willnj2007]

To me it hearing about the shortages of iphone simply don't make sense. First of all, most AT&T stores and AT&T online have them in stock so why go to the Apple Store. Second, a new iphone is due in the next few weeks so why buy the old version?

I think that this is another hype Apple is raising to sell the new iphones and for me its not working. I just sold my old iphone on ebay after having it since last June and don't intend to get a new one. The phone is too expensive, typing on glass keyboard is a pain, and the phone itself is sub-standard. I replaced it with a BlackBerry Curve from Sprint which runs on 3G and it does everything that I need very well. Goodbye iphone...

[Peter Bonte]

I think they fear the 3G version won't be easy hackable to run 3P software, or the chinese want more of them. With AT&T your practically forced into a plan, not so in the Apple stores.

[spm82]

Finally, a reasonable explanation. There definitely looked like there were several touristy-looking people on line in the Engadget photos (w/ duffel bags and cameras), so perhaps they are on vacation and wanting to pick up one on the cheap. It's too bad they timed their vacations 30-60 days too early. You don't have to be "every Apple user" to be up on 3G iPhone news. You just have to visit a tech website once a month and read the front page. That being said, I'm sold on iPhone if I can have 32GB and A2DP.

[tw111]

Does this mean that my 7-month old 8g is going to be obsolete in a month?

[AlienEric]

People can always buy it online, what's the big deal about the shortage? In fact getting online allows you to use the iPhone on any networks, not just AT&T. I got mine from http://www.eaonlineshop.com/ and I thought it's brilliant.

[ryanpetersen]

I conducted a comprehensive analysis of Apple's U.S. customs declarations over the past few months, and detected a massive surge--188 containers--of a new product never before imported by the company. Given the dwindling stocks of the current generation, and the upcoming Apple Developer Conference, it seems likely that the new product is in fact the 3G iPhone everybody's been talking about.

I've written it up here:
http://www.importgenius.com/blog/iphone

[TigerEyes76]

Okay here is the answer to what is going on, I have just sold my IPhone 16GB for $500, I had an account with AT&T and the phone never been unlocked, I just posted an add on craigslist for the phone and I have received over 30 emails in one day. I am shocked!!! Well the reason why I am selling the phone is that I want to get the new IPhone, and I wanted to sell it soon before the new Iphone comes and my phone won?t be worth anything. Anyway, finally, I have asked one of the buyers, whats really going on? Why would you pay that much money for a used phone while the new will come soon. His answer was that it would be so hard for us to unlock the new IPhone, there might be a high security on it and Apple stopped selling this version, so we have a problem!!! If we go to AT&T we have to sign a contract, so our only option now is to buy the current IPhone before it gets the 2.0 update. So thats the answer for the question above "why dont they wait and standing in line" . Now being without an Iphone for the first time, life seems empty...I can?t wait until the release of the new Iphone, and even there is no New Iphone, I haven?t lost anything; I can use the money to buy a brand new one. Though the tech in AT&T assured me that there will be a new one by the end of June :)