1 Million iPhones Snapped Up In 3 Days

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

(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.

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

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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.

[bobnjersey]

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''!

[mycomment-2009]

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.

[nothappyatall]

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.

[nothappyatall]

"Many owners of the older phone were left with unusable units. "

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

LOL it''s a freaking PHONE get over it!

[credibility2]

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?

[linfinster]

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...

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.

[newview08]

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.

[missingamerica]

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...

[rafterman1]

===''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.

[sociald63]

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 $$)

[berniepeders]

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

[standncount]

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!"

[xmanborg]

WHO CARES

Get rid of your cell phones, do you always have to be connected to the frackin phone and be available 24/7.

[anecdote1]

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.

[megamanx1-2009]

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

[megamanx1-2009]

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!!

[gwagener]

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.

[anecdote1]

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.

[anecdote1]

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..