NEW YORK, July 14, 2008

1 Million iPhones Snapped Up In 3 Days

Activation Problems Subside As Buyers Wait Hours In Line For New 3G Network Phone

    • The first buyer in Hong Kong, Ho Kak-yin, holds his new iPhone during the first day of the device's release, July 11, 2008. Photo

      The first buyer in Hong Kong, Ho Kak-yin, holds his new iPhone during the first day of the device's release, July 11, 2008.  (AP Photo/Kin Cheung)

    • Apple iPhone 3G Photo

      Apple iPhone 3G  (AP)

    Previous slide Next slide
  • Photo Essay The iPhone In 3G

    Highly anticipated Apple iPhone hits stores around the world.

(CBS/ AP)  Apple Inc. said Monday it has sold 1 million iPhones in the three days following the release of the latest model on Friday.

"IPhone 3G had a stunning opening weekend," said Steve Jobs, Apple's chief executive, in a statement.

But the launch was plagued by software problems. All the new iPhones had to connect to Apple's servers for activation, which quickly overloaded them. Lines of customers built in stores as employees were unable to get the phones working.

Additionally, new software was released for the old iPhone, which required reactivation of those phones. Many owners of the older phone were left with unusable units.

Reports of activation problems subsided over the weekend, as the servers apparently recovered, and buyers were able to activate their phones through their home computers.

In a client note, Morgan Keegan & Co. analyst Tavis McCourt said the launch "was clearly not as smooth as last year's launch" but said demand "was clearly strong across the U.S., with lines persisting at the Apple store in Nashville (Tennessee) at least through Saturday night."

McCourt rates Apple shares "Market Perform."

Meanwhile, thanks to Apple's application store and the many programs that run on the new phone, the iPhone may fundamentally change the way people listen to the radio when they're in their cars or otherwise on the go, says CBS News technology analyst Larry Magid

Two free applications for the iPhone and iPod Touch, and another program that costs only $4.99, make it possible to listen to live radio on the iPhone from anywhere, including a moving car, Magid reports.

Read Larry Magid's analysis of the iPhone's potential impact on radio.

The iPhone 3G was launched simultaneously in 21 countries, including the U.S.

Apple had sold about 6 million units of the first-model iPhone since it launched in the U.S. a year ago. The company has set a goal of selling 10 million iPhones by the end of 2008.

Shares of Apple rose $4.83, or 2.8 percent, to $177.57 in morning trading.

Apple also said users of the iPhone and iPod touch had downloaded more than 10 million applications from its new App Store since it went online on Thursday.

Of the store's 800 applications, a quarter are free. Most of the rest cost less than $10. Programs include news browsers, AOL Instant Messenger software, games and Web radio players.



© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

Video and Galleries from SciTech

Add a Comment See all 28 Comments
by lib_crusher July 14, 2008 3:11 PM PDT
So where do I buy my plastic, Oriental mannequin with a "Jealous?" t-shirt?
Reply to this comment
by anecdote1 July 14, 2008 3:16 PM PDT
So where do I buy my plastic, Oriental mannequin with a "Jealous?" t-shirt?
Posted by lib_crusher at 03:11 PM

It comes with the phone. It''s inflatable.
Reply to this comment
by setumstrt9 July 14, 2008 3:17 PM PDT
Wait, I thought all you libs said we''re in a recession?

I''m confused!!
Reply to this comment
by brianp55 July 14, 2008 3:19 PM PDT
My God.....I just want to be able to receive a call from my wife if she''s running late and I need to pick up the kids!
Reply to this comment
by yongamerica July 14, 2008 3:26 PM PDT
There is a sucker born every minute.
Reply to this comment
by idnnsg July 14, 2008 3:29 PM PDT
The undeniable response to the question posed by the t-shirt in the picture is "NO!" My phone works just fine, thank you. And I don''t need to give my money to Steve Jobs in order to validate my existence.

In related news... expect a whole bunch more "accidents" caused by these idiots playing with their iPhones when they should be paying attention to their driving!
Reply to this comment
by idnnsg July 14, 2008 3:34 PM PDT
setupstrt9 says (asks?), "I thought all you libs said we''re in a recession?"

No, it''s the vast majority of the world''s economists who say we''re in a recession. Those "libs" you''re talking about are nothing more than people who are able grasp this fact. (You know, the "reality-based" community of people, as opposed to the crazies who live in that fantasyland called Bushworld.)
Reply to this comment
by displeased July 14, 2008 3:35 PM PDT
Wait, I thought all you libs said we''''re in a recession?
I''''m confused!!
Posted by setumstrt9

Of course you are.
Reply to this comment
by anecdote1 July 14, 2008 3:36 PM PDT
Theres an INFLATABLE iPHONE NOW??? How come Im always the last one to know about this stuff?
Posted by DaVicar2 at 03:26 PM

Whoops my bad. After checking into it, the only thing inflatable is the cost of the phone and internet service..
Reply to this comment
by anecdote1 July 14, 2008 3:39 PM PDT
In related news... expect a whole bunch more "accidents" caused by these idiots playing with their iPhones when they should be paying attention to their driving!
Posted by IDNNSG at 03:29 PM

I can guarantee it. Basically millions of teens will be driving around America with one of these pocket porn machines.
Reply to this comment
by gwagener July 14, 2008 3:56 PM PDT
Apple has done a good job of media manipulation to make this thing seem like a must-have gadget.
The server crash due to popularity was no doubt engineered deliberately. They either set the server capacity low or planned the number of countries for initial release high, possibly both.
This story is evidence of further media manipulation.
Well done Apple, that is capitalism.
Reply to this comment
by megamanx1-2009 July 14, 2008 4:23 PM PDT
Look at that moron...

Yay! I overpaid for a phone I didn''t even need 30 seconds before the guy behind me!!

Nevermind it''ll be obsolete in 2 weeks!!

Reply to this comment
by megamanx1-2009 July 14, 2008 4:24 PM PDT
MegamanX1 - glad you are doing ok, we have all been worried about what may have happened to you since lately we have not seen any of your brilliant writings on the bathroom wall at the Jr High School


--------------------------------------------------------------------------------

Posted by BC_Kelly at 04:22 PM : Jul 14, 2008


Thanks. It''s good to be missed :D
Reply to this comment
by anecdote1 July 14, 2008 5:07 PM PDT
The iPhone is a Wireless Computer connected with the Internet, and (as Dave L says) in your pants
Phone calls are just gravy
Thanks, BC
Posted by BC_Kelly at 04:06 PM :

Um, that''s not gravy. I''d dry off your phone if I were you. The good thing is it will eliminate alot of Darwin candidates who will insist on driving and surfing at the same time.
Reply to this comment
by xmanborg July 14, 2008 5:48 PM PDT
WHO CARES

Get rid of your cell phones, do you always have to be connected to the frackin phone and be available 24/7.
Reply to this comment
by standncount July 14, 2008 7:24 PM PDT
Yeah just wait and see how many people will be crying the blues when Apple lowers the cost of this one. It''s called "Buyers remorse!" Man I value my time more than this. People are "dee-dee-dee!"
Reply to this comment
by berniepeders July 14, 2008 7:29 PM PDT
I refuse to own a cell phone. If I need to make a call and also have to go somewhere, I either use a regular phone before I leave, or wait until I get there and use a regular phone then. I enjoy being "out of touch" for the time it takes to get from one place to another. Nothing is THAT important that it can''t wait a little while. What did we do before cell phones, anyway? Just my opinion.
Peace
Reply to this comment
by sociald63 July 14, 2008 8:05 PM PDT
and i million will be pis-sed off when they get thier billing statements w/ all sorts of unautho''d coverage *** (that''s how apple will make thier $$)
Reply to this comment
by rafterman1 July 14, 2008 8:27 PM PDT
===''Pathetic fools... Apple milks them like a barn full of cash cows. Line up to be milked.''===
Posted by azure11

I''d love to go through yur house and see all the useless s h i t *you* have.
Reply to this comment
by missingamerica July 14, 2008 8:31 PM PDT
One million people - each probably relatively young - buying new IPhones for the pizazz factor as the economy teeters around them.

They quit teaching that fable about the grasshopper and the ant, huh?

Oh well...at least the money went back into the American economy through the hands of the production workers at those great big American Apple factories.

Oh, wait...
Reply to this comment
by newview08 July 14, 2008 8:46 PM PDT
People actually wait in line for this kind of stuff? Get a life! Heaven forbid you forget your light saber or Luke Skywalker commemorative tool belt or something. Don''t forget your supply of Jolt cola and Ding Dongs. Nerds.
Reply to this comment
by July 14, 2008 10:22 PM PDT
Pathetic fools... Apple milks them like a barn full of cash cows. Line up to be milked.

Posted by azure11

If they wish to be milked, it''s up to themselves. At least their devoted consumership supports those of us with Apple stocks :)
What I would like to see less is media frenzy regarding this subject. Honestly, it was almost comparable to Y2K live video footage from around the globe. First, the Japanese rushing into an Apple store, then some pictures from UK, and then -finally, here.
Reply to this comment
by linfinster July 14, 2008 10:58 PM PDT
Oooh, great story ...
but in regards to the comments about the Sudan issues:

THERE WILL BE BLOOD in Africa...it''''''''s sad, true, and unavoidable...but the bottom line is, Africa''''''''s problems can only be solved by Africans and if there is bloodshed...so be it...after all European developed came at the price of many lives lost for over two-thousand years, is it really surprise that this is happening elsewhere?

Posted by ozilot at 12:59 PM : Jul 14, 2008


Interesting observation, but perhaps you are missing the point and bigger picture here ... history should not have to repeat itself merely to allow equality in stupidity and heartlessness ... such savagery is wrong. Why don''''t you move there and get raped by 20 men or watch your 6 yr old daughter have 15 men climb on her and do their disgusting acts, her leaving her with who knows what physically and emotionally, and tell me it''''s progress?! Shame on YOU!

Just thought I''d use this space here like people do with US politics on all the stories I read ... I''m now guilty of the same thing, i guess...
Reply to this comment
by credibility2 July 14, 2008 11:23 PM PDT
The vapid find meaning not in life or themselves but in tech gadgets that amuse their pathetic puny lives as a distraction. Apple keeps the kids stocked with toys, while AT&T bloats the charges for the toys'' usage. And this is the enlightened generation?
Reply to this comment
by nothappyatall July 15, 2008 9:20 AM PDT
"Many owners of the older phone were left with unusable units. "

BWHAHHAHAHAHA!!!!!!!!!!!

LOL it''s a freaking PHONE get over it!
Reply to this comment
by nothappyatall July 15, 2008 9:22 AM PDT
oh Its cool.why not join our chatting with black hot girls in ukniggerfriends.com where all Men can find real dream parteners with photos,... who enjoying chatting sports and stars...
Posted by wiwi5"

Cause I don''t ''chat'' with females, human ones anyway.
Reply to this comment
by mycomment-2009 July 15, 2008 9:36 AM PDT
I guess consumer confidence isn''t sooooooo bad after all. Obviously we are not so broke that we aren''t still running out buying our favorite new toy. Personally I''m into this junk...but hey, to each his own.
Reply to this comment
by bobnjersey July 15, 2008 10:29 AM PDT
we work w/ a major us telcom carrier ... they offer the service for the iphone exclusively in the us. i''ve seen many customer monthly bills as part of what we do w/ this client. many, many cases where the monthly charge for service is $600, $700, even $1000+.

it''s not necessarily all iphones ... but clearly a fairly common scenario where people are spending hundreds a month for ''their phone''!
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