iPhone 3G shortages causing major delays for AT&T, businesses

[AppleInsider]

Apple promised that iPhone 3G and its iPhone 2.0 software would be more suited to business, but a severe shortage of the device could force companies to wait as long as two weeks before they see their orders, and is forcing many home customers to go without at the same time.

Memos circulating around AT&T and obtained by AppleInsider are warning AT&T business sales consultants that any workplace-related orders placed from Sunday the 13th onwards won't be fulfilled for at least another 10 to 14 days.

The telecoms company isn't asking orders to be halted but says new orders will immediately appear as backordered.

And while both AT&T and its corporate clients are aware that sheer demand is the cause, the delay is severe enough to frustrate corporate buyers, few of whom are used to seeing unexpected shipping delays.

"I have an enterprise account and could not get an iPhone for any price," one such buyer tells AppleInsider. "I thought Apple had finally figured out the whole business thing but alas it seems not."

The situation is little better for AT&T's bread-and-butter personal customers. An informal poll of 50 AT&T stores nationwide by CNET reveals that not one of the locations has any iPhone models to sell, and none of these stores can promise new shipments within the week.

These stores are receiving short term shipments but can't guarantee a minimum amount. As little as 10 may ship one day, while 100 ship the next.

For its part, AT&T spokesperson Jenny Parker says the carrier is delivering "tens of thousands" of the new iPhone per day but will only add that it hopes to restock stores as quickly as possible.

Apple, by contrast, still has at least some of its own stores that claim to have iPhones, though these are also running low with multi-hour lineups a frequent sight.

[ View this article at AppleInsider.com ]

[vinney57]

Two weeks???!!! We're all doomed!!!!

[JimDreamworx]

I know someone who works in shipping/logistics who told me that they had large crates of iPhones sitting in warehouses at their terminal up to two weeks before the launch - and some of those crates are still sitting there. Didn't press the person any further about where the delay is coming from, but it does seem kind of strange that these things aren't getting to the retailers or the retailer's distribution centers.

[DrummerMan]

I was the first in line Friday morning to NOT get a phone. After people started getting their phones the Sales Rep came out and told me that I would get one (8gb) because someone changed their order. Happy me! Get in the store to find out that someone in the line had cut in front of me further up and as a result no iPhone. I was O.K. with that as my father was the last to get one and that was the most important thing. I have an original iPhone so it was not a problem.

The sales rep that took my order said that I should have one by Wednesday (yesterday) I also know that there are people who ordered after me that have received their phones. So the wait continues.... I probably will not get it until next week. (I Hope)

[cameronj]

Originally Posted by DrummerMan

I was the first in line Friday morning to NOT get a phone. After people started getting their phones the Sales Rep came out and told me that I would get one (8gb) because someone changed their order. Happy me! Get in the store to find out that someone in the line had cut in front of me further up and as a result no iPhone. I was O.K. with that as my father was the last to get one and that was the most important thing. I have an original iPhone so it was not a problem.

The sales rep that took my order said that I should have one by Wednesday (yesterday) I also know that there are people who ordered after me that have received their phones. So the wait continues.... I probably will not get it until next week. (I Hope)

Everyone should just go to ATT, get on a direct fulfillment list and stop wasting time in line. It's so easy, who has the time for all this line waiting?

[drjjones]

88 stores are totally sold out as of 9 pm tonight . Was 118 2 nights ago.
65 stores still have 16 gig black, most sold out iphone. Tuesday will be fun in the AAPL market

[seanie248]

OH My God... 2 weeks delay... how will i or anyone in the world survive??

this MAJOR shortage is now affecting my business so much that , after 10 years of trading, i think i might have to fire all staff and close shop.


journalism at its lowest!!!

Seanie

[SpamSandwich]

Originally Posted by seanie248

OH My God... 2 weeks delay... how will i or anyone in the world survive??

this MAJOR shortage is now affecting my business so much that , after 10 years of trading, i think i might have to fire all staff and close shop.


journalism at its lowest!!!

Seanie

Only the best for our faithful readers!

[PeterO]

Originally Posted by JimDreamworx

I know someone who works in shipping/logistics who told me that they had large crates of iPhones sitting in warehouses at their terminal up to two weeks before the launch - and some of those crates are still sitting there. Didn't press the person any further about where the delay is coming from, but it does seem kind of strange that these things aren't getting to the retailers or the retailer's distribution centers.

Ah, so there's where Apple has embargoed Canadian iPhone stock... ;-)
(purely an unsubstantiated, but salacious rumour)


However, please have your person send a picture to Rogers to further underscore the complete cluster-f they've made of the iPhone roll-out.
(a Truth)


.

[JeffDM]

Originally Posted by drjjones

88 stores are totally sold out as of 9 pm tonight . Was 118 2 nights ago.
65 stores still have 16 gig black, most sold out iphone. Tuesday will be fun in the AAPL market

That quarterly report wouldn't include that information. Are you suggesting they discuss their iPhone 3G successes in the conference call? I'm not sure if it's proper protocol.

Originally Posted by cameronj

Everyone should just go to ATT, get on a direct fulfillment list and stop wasting time in line. It's so easy, who has the time for all this line waiting?

That's what I did last Saturday. I should be getting it on Monday when it comes in, or when I get to it during the week. I don't care for this idea of standing around like a bum for several hours. I could stand in line for hours if I wanted to, there are other things I'd rather do. Heck, I've waited a year already, another week isn't going to hurt anyone. Maybe I could say I waited 4 months too long, but oh well.

[NYCMacFan]

Originally Posted by drjjones

88 stores are totally sold out as of 9 pm tonight . Was 118 2 nights ago.
65 stores still have 16 gig black, most sold out iphone. Tuesday will be fun in the AAPL market

NYC stores all have iphones, but every time I call they say 4 hour wait....

[Rot'nApple]

Originally Posted by AppleInsider

"I have an enterprise account and could not get an iPhone for any price," one such buyer tells AppleInsider. "I thought Apple had finally figured out the whole business thing but alas it seems not."

Alas, I am sure your "enterprise" has never screwed up or had one bad day of operations or one upset customer in the entire life span of the business.

[winterspan]

Originally Posted by JeffDM

That quarterly report wouldn't include that information. Are you suggesting they discuss their iPhone 3G successes in the conference call? I'm not sure if it's proper protocol.

Um, I assume he's getting that data from the "Find an iPhone" store supply tool available from Apple I believe...

[Sky King]

I agree with you, almost. Actually, I would place journalism in a very low position on the respect scale...sort of right below most members of congress and most attorneys. It would be nice if they would report...but instead they consistently strive to shape public opinion. Worse yet, they are pretty effective at shaping public opinion. A sad state, huh? (I'll put my soapbox away now)

[iPeon]

Originally Posted by Sky King

I agree with you, almost. Actually, I would place journalism in a very low position on the respect scale...sort of right below most members of congress and most attorneys. It would be nice if they would report...but instead they consistently strive to shape public opinion. Worse yet, they are pretty effective at shaping public opinion. A sad state, huh? (I'll put my soapbox away now)

You speak the truth my friend. Stories such as this one are silly at best.

[DrummerMan]

My direct fulfillment order just went from backordered to shipped and I will have it tomorrow (later today) So it only took a week. The supply is slowly catching up to demand. One shouldn't be surprised given the popularity of the iPhone.

[somethinbaloo]

i will wait until 3g is in my market area in the next few months and for the 32 gig iphone when that releases as flash memory is getting cheaper... other than that the iphone is awsome

[debenm]

I tried 2 AT&T stores and 2 Apple stores today couldn't get a new iPhone...

Thankfully I have the old one

[ap780]

I think that is stupid that apple Hasnt sorted out the iphone problem. After the launch of e first on u reckon they would have sorted it out. Lucky I waited on launch day in the sydney applle store cause optis have sold out and there'snstill people lining out side a week later in the morning and at lunch!! It's crazy.

AP

[JoeDyndale]

So, I stood in line today. Only for an hour though - and that was my mistake. I was number 25 (or something) in line - but that didn't help much, as the store only got in 10 phones today. The stores here in Norway are getting VERY few phones in each shipment and they1re only getting shipments two times a week. Netcom, the iPhone carrier here in Norway, sell iPhones every Wednesday through their online store - but those phones are also ripped away within minutes.

So I'm starting to think Steve is making all the phones himself. By hand.

[Bageljoey]

Originally Posted by JoeDyndale

So, I stood in line today. Only for an hour though - and that was my mistake. I was number 25 (or something) in line - but that didn't help much, as the store only got in 10 phones today. The stores here in Norway are getting VERY few phones in each shipment and they're only getting shipments two times a week.

This is what I was worried about with a worldwide, single-day release. It has got to be impossible to judge demand and having millions in crates if sales were slower than expected would have killed them.
...Unless this is what they wanted. The whole "It is so hot it can't be kept in stock" Wii thing. I wonder how many weeks of "Its so hot" it takes to counteract the "Apple/iPhone dissapoints with a problematic, opening" story.

[Bageljoey]

On another topic, does anyone know how the release has gone in Japan? I know there was alot of talk about how the iPhone would not be good enough for the sofisticated comsumers there... Is that holding true in the early stages?

[JoeDRC]

I thought business' were a lot smarter than this, it sounds to me like the one quoted in the article has no current alternative. Say like the blackberrys the were using before.
They would of known about the hype, and would of anticipated delays surely.

[ncee]

I ordered my iPhone at the local (Auburn, Maine) store and was told I should see it within 2 weeks.

Skip

PS They only had 50 opening day, and sold out in the first hour … and have since sold (taken orders) - according to my salesman) about another 60+-.

[dayhill]

I was 10th in line after they sold out Friday morning. I figured I would just do the direct fulfillment order - the reps told me it would be in by early next week. I got the confirmation e-mail with directions on how to check the order status, but it didn't work. I spent HOURS on the phone with reps who finally located the order, only to tell me that it was back-ordered. I went to the ATT store and it took them 30 minutes to locate the order, but the manager told me it would be in within "the next few days". I called ATT customer service, and they told me - once they located the order, that it would likely be several more weeks. In the meantime, people who were behind me in line were at the store when I was there receiving their phones, and people were walking into the Apple Store in Chicago and walking out with phones right away. I went back to the store and requested the order be cancelled since they weren't able to track it and their automated system was useless. Even though they told me when the order was placed that it couldn't be cancelled, they did cancel it right away. That was the only good part of the whole experience dealing with ATT. If you have access to an Apple Store - choose it every time over the idiots at the ATT store. And I swear - If I hear the scripted response "I do apologize for the inconvenience" one more time...

[1Gremlin]

Originally Posted by JimDreamworx

I know someone who works in shipping/logistics who told me that they had large crates of iPhones sitting in warehouses at their terminal up to two weeks before the launch - and some of those crates are still sitting there. Didn't press the person any further about where the delay is coming from, but it does seem kind of strange that these things aren't getting to the retailers or the retailer's distribution centers.

I have a bud at work who recently got a Wii. He showed up at the store early to get the thing and the sales rep told them the had plenty in stock in the warehouse but were only authorized to release so many at a time. We at work figured Steve Jobs was up to the same crap considering the lead time they had. All to keep the PR rolling.

[merdhead]

Originally Posted by NYCMacFan

NYC stores all have iphones, but every time I call they say 4 hour wait....

It's the new Apple policy, even if phones are in stock, you have to wait in line for 4 hours for the pleasure of being able to purchase one. I hear they're installing an obstacle course with lions and flaming pools of oil soon so get in line while you still can.

I mean really, who gives a fuck? People who wait in line, complain, sweat it and generally can't wait for a product deserve everything they get and more. It's a nice phone but not really necessary or life-changing. And it's especially not necessary to get one right now.

We seem to be entering a new period of consumerism where the buyer is privileged to buy the product. We see this in the Wii, which is obviously being held back and to lesser degree the iPhone. It's exclusivity for the masses.

For me, I thought I'd wait until the 3G till I got one, but now I've realised the phone is just too big, too restricted and too expensive as a phone. And I don't like contracts. But I need a software development platform so I'm getting a touch I think. Online.

[solipsism]

Originally Posted by DrummerMan

The sales rep that took my order said that I should have one by Wednesday (yesterday) I also know that there are people who ordered after me that have received their phones. So the wait continues.... I probably will not get it until next week. (I Hope)

It's possible you got lost in the shuffle as this process is atypical for AT&T CSRs, but most likely the model you are requesting is more popular and so people after you requesting a different model are getting theirs first.

I ordered my first one (16GB black) on Friday and was called early on Tuesday to pick it up. Since you could order and pay for them ahead of time at AT&T stores I did that several times over at various retailers. I was also able to pick one up immediately at an Apple Store on Sunday. I feel like a bit like an ass now as I now have 3 16GB iphones 3Gs in hand.

Originally Posted by drjjones

88 stores are totally sold out as of 9 pm tonight . Was 118 2 nights ago.
65 stores still have 16 gig black, most sold out iphone. Tuesday will be fun in the AAPL market

I was curious about that. The Apple Stores are getting a lot more product than AT&T stores. I'd even wager that the 187 Apple Stores have gotten more product than the ~1500 AT&T stores.

PS: This AI article just appeared on my RSS feed 5 minutes prior.

[solipsism]

Originally Posted by merdhead

We seem to be entering a new period of consumerism where the buyer is privileged to buy the product.

It's nothing so sinister. It's just supply and demand.

[merdhead]

Originally Posted by solipsism

It's nothing so sinister. It's just supply and demand.

You really can't say that about the Wii, they have had plenty of time to meet demand.

I'm not suggesting it's sinister, just marketing.

[solipsism]

Originally Posted by merdhead

You really can't say that about the Wii, they have had plenty of time to meet demand.

I'm not suggesting it's sinister, just marketing.

I'm not so sure we can be certain of that. It's a relatively low cost console that appeals to a larger age group that other consoles. Pretty much everyone I know has a Wii, but only a handful of people I know have PS3s or 360s. Even my parents have a Wii for when guests come with their kids, and my father has even enjoyed Wii Sports Golf (this is a big deal considering the last video game he could play or enjoy was Pong.. seriously!).

[drjjones]

What Apple should have done was triple production , sell the phone at $800 per iphone and give a $600 credit on your ATT account when u sign up for new contract , DUH. Let the customer buy 800 at a time still on the pallet and rake in the cash . Who cares if you activate it with ATT? Not APPL stock holders . Export all you want at full price . 70 countries on 1st day . That would sell some iphones lol .

[breeze]

2 weeks- ?????!

It really is all over.

[jcatma61]

"I have an enterprise account and could not get an iPhone for any price," one such buyer tells AppleInsider. "I thought Apple had finally figured out the whole business thing but alas it seems not."

I'm so sick and tired of IT types who dis apple. You morons waited for a Blackberry, too. And every goofy Treo had a dip in its supply chain too.

Wii anyone? How long did you wait, or how far and wide did you look before you found one (only to find out you were going to get scalped for it)?

[solipsism]

Originally Posted by drjjones

What Apple should have done was triple production , sell the phone at $800 per iphone and give a $600 credit on your ATT account when u sign up for new contract , DUH. Let the customer buy 800 at a time still on the pallet and rake in the cash . Who cares if you activate it with ATT? Not APPL stock holders . Export all you want at full price . 70 countries on 1st day . That would sell some iphones lol .

The major problem with that is despite teh overall higher cost over 2 years, many people either don't look at the long term or have the immediate funds for such a high initial price product. Typically, I'd say that two go hand-in-hand.

I had mentioned that months ago as a possible option, when you activate through iTunes you get one of 3 options for a refund: AT&T account credit, iTunes Store credit, or a refund check in the mail.

A possible minor issue with this may be with AT&T activation. With a torrent of quick sales, like last year, AT&T's activation servers may be bogged down like last year. But this year the interval was about 15 minutes per CSR per store for initializing the activation process. While some had issues this year I don't think anyone was even close to the timeframe debacle that was experiences last year and was well with the AT&T timeframe for activation. I was activated in 10 seconds on Sunday afternoon.

[solipsism]

Originally Posted by jcatma61

IWii anyone? How long did you wait, or how far and wide did you look before you found one (only to find out you were going to get scalped for it)?

I waited 7 months and found one at a Walmart the morning before I left the country for 6 months last year, and wasn't able to take it with me.

edit: Some Wii sales stats...

• http://arstechnica.com/news.ars/post...n-console.html

[merdhead]

Originally Posted by solipsism

I'm not so sure we can be certain of that. It's a relatively low cost console that appeals to a larger age group that other consoles. Pretty much everyone I know has a Wii, but only a handful of people I know have PS3s or 360s. Even my parents have a Wii for when guests come with their kids, and my father has even enjoyed Wii Sports Golf (this is a big deal considering the last video game he could play or enjoy was Pong.. seriously!).

I haven't got an issue with the Wii's popularity or quality, it's the suggestion that a company can't meet demand after two years. Either they are holding back stock as a marketing gimmick, or they are incompetent. I'm going for the former. Price wise, a product becomes cheaper to produce as you build more, so building less would mean the price would go up.

[solipsism]

Originally Posted by merdhead

I haven't got an issue with the Wii's popularity or quality, it's the suggestion that a company can't meet demand after two years. Either they are holding back stock as a marketing gimmick, or they are incompetent. I'm going for the former. Price wise, a product becomes cheaper to produce as you build more, so building less would mean the price would go up.

Or they could be saving money on production by using a smaller production facility/ies. There are to many variables as to what is going on with Nintendo to make a clear cut determination, but I see no evidence that are creating a false issue with supply and demand.

[hezekiahb]

Originally Posted by seanie248

OH My God... 2 weeks delay... how will i or anyone in the world survive??

this MAJOR shortage is now affecting my business so much that , after 10 years of trading, i think i might have to fire all staff and close shop.


journalism at its lowest!!!

Seanie

I'm sorry but this is baby behavior. "I want my shiny new iPhone, I can't go another day without it!" If you were able to survive without it this long, then you can survive another 2 weeks.

Businesses like Apple can only take so big a gamble on products & everyone underestimated the the popularity of the 3G. Want to blame someone then blame the nay sayers in the market who keep saying the iPhone isn't a viable competitor to the Blackberry & other business oriented smart phones. They give it all a negative spin, Apple pulls back a bit on their preparations so as not to loose their shirts, & now those same whiny babies are mad at a dilemma they created!

Can we get off the iPhone already, I'm sick of it dominating the tech news!

[hezekiahb]

Originally Posted by seanie248

OH My God... 2 weeks delay... how will i or anyone in the world survive??

this MAJOR shortage is now affecting my business so much that , after 10 years of trading, i think i might have to fire all staff and close shop.


journalism at its lowest!!!

Seanie

Just so we're clear, I was agreeing with seanie248.