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iPhone Roundup: Activation Woes; 500,000 Sold?

By Staci D. Kramer - Sun 01 Jul 2007 08:35 PM PST

Activation woes: About two percent of this weekend’s iPhone buyers ran into major activation problems, according to various reports ... unfortunately for Apple and especially for AT&T, which is taking the brunt, those having problems include some high profile, prolific bloggers, among them Thomas Hawke, Steve Rubel, Rex Hammock. Some of the problems are due to volume, some due to the complexity of porting numbers from one carrier to another, some had the wrong kind of AT&T account, some appear to be a flaw in the iTunes activation process. More at WSJ; CNetNews.com; NYT.

Claiming victory: Whether it turns out to be 2 percent or something north of that, most of the time the sales and activation process appears to have worked. While Apple is posting availability at various stores every night, AT&T told the NYT, “This is a dynamic situation, and I don’t think it would be helpful to say this many had sold out.” In fact, it was relatively easy for would-be buyers to pop in after the fuss and pick up an iPhone or two. And, yet, USA Today reports, according to eBay, “more than 2,600 iPhones sold for an average price of $775.03. The highest selling price: $12,500, for a Saturday sale through eBay’s ‘Buy It Now’ feature, which offers items at a fixed sum.”

Number sold?: A number already rapidly making the rounds and sure to become part iPhone lore whether or not it matches reality: 500,000, an estimate by Piper Jaffray’s Gene Munster. CNET’s Crave blog: “Piper Jaffray’s Gene Munster released a report Sunday night estimating that Apple sold about 500,000 units from 6 p.m. Friday through the close of business Sunday. Going into the weekend Munster thought Apple would sell 200,000 on Friday and Saturday.”

Munster also says 95 percent of iPhone buyers in San Francisco, New York and Minneapolis (home to Piper Jaffray’s offices) bought the more expensive 8G model and that half of those buying were new AT&T customers—but this is based on a survey of 235 people so take it with the customary grain of salt.

Posted in: Companies, Apple, Operators, AT&T, Gadgets



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