New iPhone: what a debacle

Posted by Dave Rosenberg

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I can't even believe what an unbelievable debacle the new iPhone sales/activation process has been.

As an Apple fan boy I find it hard to believe that this could even happen, but anyone who has dealt with AT&T should have expected something crazy to occur. Someone in the office here mocked me for running out and buying Leopard when it came out, but at least then I knew I was just dealing with Apple--no horrific cellphone carrier experience to deal with.

Matt points out that maybe this is greed on Apple's part, it's insane that Apple refused to let customers purchase the phone directly from Apple stores. And it's even crazier that the company hasn't yet released a statement explaining it.

Topics:: Market Dynamics,; Disruptors,; Marketing

Tags:: iPhone

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Add a Comment (Log in or register) 15 comments


by olyhomer July 11, 2008 2:24 PM PDT: Since when did AT&T start running iTunes? I would pin this more on Apple than anything. They can equally share blame for this debacle. You're so delusional that Apple can't mistakes that you overlooked that fact.; Reply to this comment


by psjofors July 11, 2008 2:36 PM PDT: Pathetic performance Apple!; Reply to this comment


by esemef July 11, 2008 2:42 PM PDT: Back to reality for all you Apple lovers...what's next, find some way to blame this on Microsoft?; Reply to this comment


by kylegwell July 11, 2008 3:03 PM PDT: The explanation of why you can't buy it in the apple store is very simple. APPLE (not AT&T) didn't honor their end of the contract (exclusive contract with AT&T service). Thus, AT&T made a GOOD business decision, forcing the contract to be signed in the store when the phone is bought. That way, even if someone does jailbreak the phone, they still have to pay out the 2 year contract. Im so sick of apple fanboys blaming AT&T for the problems of the iphone when anyone who actually pays attention to the history of the phone, or even does a miniscule amount of research, knows that Apple has done nothing but fail to perform on the promises they made.; Reply to this comment


by kylegwell July 11, 2008 3:03 PM PDT: The explanation of why you can't buy it in the apple store is very simple. APPLE (not AT&T) didn't honor their end of the contract (exclusive contract with AT&T service). Thus, AT&T made a GOOD business decision, forcing the contract to be signed in the store when the phone is bought. That way, even if someone does jailbreak the phone, they still have to pay out the 2 year contract. Im so sick of apple fanboys blaming AT&T for the problems of the iphone when anyone who actually pays attention to the history of the phone, or even does a miniscule amount of research, knows that Apple has done nothing but fail to perform on the promises they made.; Reply to this comment


by snoopy0506 July 11, 2008 3:09 PM PDT: You are mistaken...you can buy directly from the Apple stores and activate it in their store. The issue today was solely Apple's alone.; Reply to this comment


by vrtdoc July 11, 2008 3:22 PM PDT: Um, does this remind anybody of when the original iPhone came out?! I love (hate) Apple but Apple users have notoriously short memories. Release bugs are classic with Apple. Rule of thumb; when a new Apple product comes out...take a breathe and wait a while!; Reply to this comment


by deyberg July 11, 2008 5:38 PM PDT: "Rule of thumb; when a new Apple product comes out...take a breathe and wait a while!" Mmmm this sounds like someone talking about Microsoft not Apple. Could it be true Toto, we will never make back to cupertino? They all release a product before it's time, we buy in and we wonder why. You wouldn't buy a car with these many problems, but ppl keep going back to being the first one on day one. You get what you sow.; Reply to this comment


by arthawaii July 11, 2008 5:59 PM PDT: Reply to this comment


by arthawaii July 11, 2008 6:01 PM PDT: Hello, Steve, Got anything to say?; Reply to this comment


by gr33nman July 12, 2008 1:41 AM PDT: CNET - on iCrack...

I woke up this morning, not able to sleep, and am disgusted that the front page of CNET looks like 'iphone central'. Every single article is about iphone, how sweet it is, how customers are suffering because they can't get it, what knew stuff you'll be able to do with it, what games you can buy for it, and how bad every fan-boy and fan-girl wants or needs it. You would think we're talking about Britney or Paris or Princess Di. CNET, If I were your parent and you were my child, I'd be breaking that phone like some parents break Barney DVD's. I'd just snap it, toss it and tell you it got lost. Is this the new crackberry? It sure isn't news. No. It's a phone. Put the phone down. No -- put it down now. Go to your time-out corner for five minutes. Get back to more balanced and objective reporting.; Reply to this comment


by giovsimone July 12, 2008 5:07 AM PDT: I read on melablog.it that also people in Italy had several problem activating th I phone...; Reply to this comment


by kpwalter1 July 12, 2008 7:15 AM PDT: Can someone help me with setting up the exchange on 2.0 iphone software?; Reply to this comment


by d55_p July 12, 2008 9:09 AM PDT: 1. Why do the AT&T stores keep running out of 3G's but the Apple stores have plenty?
2. Why is the iPhone the only device that AT&T sells whereby I can't order and pay then have them hold a phone for me when they get a shipment?
3. Why does AT&T charge more for the new 3G contracts than for the previous 1st G iPhones?

Answer: Apple Corporate

AT&T's deal with Apple is so pitiful that they're trying to squeeze every penny out of these customers, even at the risk of alienating them long-term.

Apple intentionally shipped fewer phones to AT&T stores to increase the "buzz", create longer lines and keep the focus on their own stores.

It's all to create buzz which at the same time hurts loyal customers. Thanks a lot Steve.; Reply to this comment


by john55440 July 13, 2008 8:46 AM PDT: Apple's iTunes servers failed. That's clearly Apple's fault, not AT&Ts.; Reply to this comment

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About Negative Approach

Dave Rosenberg is CEO and Co-founder of MuleSource, a venture-backed company that develops open source integration and infrastructure software. On the Negative Approach Blog, Dave discusses the dynamics of growing a startup company and how the software market is evolving against monolithic software corporations whose corporate hegemony stifle innovation and annoy developers worldwide. With experience at both large corporations and several startups, technology has long been his best friend and mortal enemy. The postings on this site are Dave's own and don't necessarily represent the positions, strategies, or opinions of MuleSource or its investors. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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