Filed under: Analysis / Opinion, iTS, iPhone
What happened: AT&T on iTunes activation problems
CIO.com interviewed AT&T spokesperson Mark Siegel, who confirmed that Friday's activation server outage was due to massive worldwide demand. This may not come as a surprise, but it's the only official comment we've heard.
"The iTunes software appeared to have been so overwhelmed by demand [Friday] that customers were not able to go through that final stage and sync their iPhones," Siegel said.
Apple has not commented on their servers' performance on Friday. Nor have we learned any more about the other great mystery: the details behind the rocky MobileMe transition that lasted Wednesday through the weekend.
The CIO article also discusses Apple's physical supply chain for the iPhone 3G, and how it performed for the rollout. Analyst consensus: top notch. "Good job to Apple for mastering the physical supply chain so well that you have this high-profile launch and your problems are not on the physical side -- you have product in stock," said Kevin O'Marah, chief strategy officer at AMR Research.
[Via Reddit.]


Reader Comments (Page 1 of 2)
AlphaDeltaVIII said 2:05PM on 7-15-2008
"Good job to Apple for mastering the physical supply chain so well that you have this high-profile launch and your problems are not on the physical side -- you have product in stock,"
Psshhh, Try going to an AT&T store to see if the iPhone 3G is in stock. They got so little units compared to an Apple store, it wasn't even funny. They are still struggling with stock...
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Little Birdy said 5:10PM on 7-15-2008
Apple stores averaged 1500 phones in stock on launch day. ATT stores averaged 50 in stock on launch day. Apple had the stock, they just retained it for themselves rather than send it to ATT.
Clark Goble said 2:16PM on 7-15-2008
Products in stock?!?! I've been to about 6 different AT&T stores since Friday in several states (I was traveling over the weekend) and no one had them in stock after about noon and they are all saying don't expect any until next week.
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SPower said 2:18PM on 7-15-2008
"the rocky MobileMe transition that lasted Wednesday through the weekend"
The rocky MobileMe transition is far from over. Aliases are broken in Mail for aliases made under .Mac, iDisk was down again this morning, Webmail still has no addressbook access in new 'compose' windows...the list goes on and on, and still no word or apology or information from Apple.
The real slap in the face is that the support page says all services are fully operational. What a joke!
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WillGonz said 2:22PM on 7-15-2008
I wonder if it was network or server related. It it were me I would have activation servers all around the globe with connections going back to Cupertino.
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Bill G said 2:29PM on 7-15-2008
Use the availability checker at apple.com tonight after 9pm. iPhone 3G is pretty much sold out at Apple stores as well.
I gambled by not waiting in line [impossible with a wife & kids to schedule around], and I'll have to see how long it takes before the supplies and demand equalize so that buying one isn't a hassle.
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Matthew W. said 2:37PM on 7-15-2008
Sorry Bill G, but the availability site is not accurate either. I've been trying to get one from both of my local Apple stores since friday. Sold out fast and even though the site has said for two days now that they are available at both stores, when I go or call them, the answer is always the same. Sold out! "Products in stock".....what a joke. Apple really didn't anticipate this high a demand and got hit hard. I'm the first to say I'm a fan boy, but shame on you Apple. Get your stuff together and push 'em out the door. 300 phones per day to every store should suffice.
MadMike said 2:33PM on 7-15-2008
Great physical supply chain? HA HA HA...
Not only did all/most of the AT&T stores in the tri-state area where I live run out. Most ran out before noon on Friday. Average AT&T store recieved, get this, 40 phones! Yeah 40. The busiest store in my area, only got 10 phones and had 75 people in line by 7:00am. Yeah, great supply chain.
Morons.
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sonicwind said 2:36PM on 7-15-2008
hello, there's product in stock because the activation problems slowed down each sales transaction. If you can't sell them quickly, you won't run out as fast. Great idea Apple!
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high fivers said 2:44PM on 7-15-2008
The AT&T store I went to in Westwood (where UCLA is in Los Angeles) only had 50 iPhones in stock to begin with Friday morning. I was the lucky one who got the last black 16 gig model and I was only the 30th person in line. iPhone was in hand at 10:15 AM that morning.
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Gregg W. Smith said 4:45PM on 7-15-2008
That is the same for me. Our store received only 30 total units. I was number 15 and got the last black 16gig available! The guy behind me was pissed! LOL
What a joke to hoard them all for the Apple stores...
wheat said 2:50PM on 7-15-2008
.Mac account won't accept credit card info for renewal.
My .Mac account is up for renewal on the 17th of July. My account says that it has a problem. I go and look and the security code is missing from the record. I have been trying to enter the security code for the credit card since this past Friday the 11th to no avail.
I called Apple and the rep said no problem, that if my account got cut off due to not being able to verify my credit card that I had 45 days to get it back active again. Right! So I guess it's OK to be without any email through .Mac for 45 days due to Apple's bungle.
I told him this whole MobileMe intro was as bad as any Microsoft event ever. He took down both my .Mac email account and an alternative email account, meaning one they could reach me if my .Mac email got shut down, and they would try to get the issue resolved.
I'm betting there will be nothing done in time to keep my account from shutting down.
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Leo M. said 3:12PM on 7-15-2008
I had the exact same problem. I feel your pain. It doesn't like my friggin security code.
wheat said 9:25AM on 7-16-2008
Would you believe that at mid-night last night, I got a form email from MobileMe thanking me for renewing my subscription.
Apple renewed me without the security code. No personal response to my complaint other than to put through the renewal. I still can't enter my security code this morning.
I'm grateful it ended up on a positive note, but I will always wonder if they handled my personally or just did the renewal along with the rest of the world on this date and they gave no appearance to care about the security code.
souring on apple said 2:54PM on 7-15-2008
75-100 people are still lining up for 3-5 hours every morning at the local Apple store for the 10-15 iphones that might or might not have been delivered the day before. The Apple webpage for availability says available, but the store employees say they have none. AT & T stores are only taking orders for a 7-10 day wait because they haven't had any since the 30 they had on Friday. The online status of those are "back-ordered".
"Analyst consensus: top notch. "Good job to Apple for mastering the physical supply chain so well that you have this high-profile launch and your problems are not on the physical side -- you have product in stock,..."
What are those people smoking?
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Drew said 2:58PM on 7-15-2008
Do we know for sure that Apple Stores got more iPhones in? I had to step out of line at the AT&T store on Friday because of work stuff, and they were sold out when I went back at lunch. I'm going to be in Dallas next week, and I was going to try the Apple Stores up there if there was a better chance that they'd have them.
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Avri said 3:25PM on 7-15-2008
I waited until the lines died at my local AT&T store on Friday (they sold out of their 70 phones by about 11.30 am) and then walked right in and ordered a phone. It arrived this morning, they called me at about 11am and I picked it up 1/2 hour later. No problems, issues, or waiting in line :-)
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itguy07 said 3:26PM on 7-15-2008
Did anyone stop to think that maybe AT&T placed their orders for iPhones from Apple and that maybe, just maybe they didn't order enough? Seems funny that Apple would lopside distribution of their hottest item.
I will agree that Apple's stock on the web page needs updated and overhauled badly but other than that, it wasn't a bad launch. Anticipating demand for 1 million of anything in 3 days is a little hard.
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scott said 3:26PM on 7-15-2008
yeah the bit i loved was our apple store had some in stock but i didn't "qualify" according to apple. not only that, i couldn't even buy the phone full price. i killed my last iphone recently and i needed to get a new one, as it was my only phone. waited in line for an hour before i got the news "you can't upgrade." well thats funny because at&t said i could. Something about having discounts or business account at one time. why should that matter to apple? shouldn't they have a list of people who can upgrade regardless? freaking retarded. i guess this is what they get for trying to get into this market :P
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Ren said 3:35PM on 7-15-2008
I checked with my local AT&T store (Redmond, WA.) about an hour ago. I was informed that there is a "Nationwide Back Order" on the iphone. The rep said that they (AT&T) are now quoting 10-21 days for delivery.
The supply chain may have 'survived' the roll out, but re-supply seems to have issues
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