Apple falls on initial iPhone activation numbers
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Shares of Apple Inc  fell 4 percent on Tuesday after AT&T Inc  issued initial subscriber numbers for customers of Apple's iPhone that were below analyst estimates.
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Apple Inc. no longer accepts cash for iPhone purchases and now limits sales of the cell phone to two per person in a move to stop people from reselling them.
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For many who bought Apple's new iPhone, members of the early-adopter clan, money is not the issue. Though some are angered by Apple's sudden price drop, some who snapped up the first iPhones say their gratification is being among the first owners of something cool and possibly revolutionary.
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Proud owners of Apple Inc.'s   iPhone raved about their first day with the device on  Saturday, but a glitch took the shine off the year's most  anticipated device for a few unlucky customers.
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SAN FRANCISCO/NEW YORK  - Thousands of U.S. gadget  fans made an orderly pilgrimage to stores on Friday to be among  the first buyers of Apple's iPhone, a music- and video-playing  device expected to reshape the mobile industry.
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Apple angered early purchasers of its iPhone with its $200 price drop but now has detailed how those early adopters can claim a $100 credit.
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Blog: AT&#38;T said it signed up 146,000 iPhone subscribers in the first two days of selling the iPhone, but the true promise of the iPhone won't likely kick in until next year.
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SAN FRANCISCO/NEW YORK  - Thousands of U.S. gadget fans flocked to stores on Friday to be the first buyers of Apple's iPhone, a music-playing and Web-browsing device expected to shake up the mobile industry.
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SAN FRANCISCO/NEW YORK  - Hundreds of gadget fans,  or their paid stand-ins, lined up on Friday to be among the  first buyers of Apple Inc.'s  iPhone, a music and video  playing phone that seeks to reshape the mobile industry.
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InfoWorld - Apple&#39;s&#160;iPhone launch&#160;has been marred by delays in AT&amp;T&#39;s phone activation system, leaving some people unable to use their new toy throughout the weekend.
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Proud owners of Apple Inc.'s iPhone raved about their first day with the device on Saturday, but a glitch took the shine off the year's most anticipated device for a few unlucky customers.
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AT&T Inc.  sold almost all  its initial stock of Apple Inc.'s  iPhone within hours  of the device going on sale, an AT&T spokesman said on  Saturday.
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Both Apple and AT&T acknowledged that some customers have had problems activating their phones to connect to the AT&T cellular network.
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(InfoWorld) - For all the buzz building about Apple's iPhone launch next week, success is not a sure bet, according to a survey released Tuesday. "The first million, no problem," said Chris Hazelton, senior analyst, mobile technology and trends with IDC, talking about iPhone sales. "Interest in this has been building for years. But the '08 goal [of 10 million sold]...that will depend on the iPhone experience. If it's not rock solid...." The IDC survey, which polled online users researching their next cell phone purchase, found a majority were interested in the iPhone but also revealed several hurdles to mass acceptance. About 10 percent, for example, said they were willing to pay full price -- the iPhone will list at $499 and $599 for the 4GB and 8GB models, respectively -- and sign a two-year service contract with AT&T, the iPhone's sole carrier. That's close to the estimate offered by a survey detailed yesterday by M:Metrics, a Seattle research firm, which said that 9 percent, or about 19 million, of all U.S. cell phone subscribers pegged their iPhone purchase intent at high. Although Hazelton didn't argue with M:Metrics' numbers, he stressed the snags that could limit the iPhone to a much smaller group than Apple and AT&T hope. "The exclusivity of AT&T will be the largest barrier," said Hazelton. "Only some people will have timed it right so that they can leave their carrier and won't have to pay an early termination fee." Others, the survey found, were unwilling or unable to eat the penalties. AT&T's rumored five-year exclusivity agreement with Apple will give the two companies the time to "weed out" other carriers from consumers interested in the iPhone, he noted, but again, that could be a slower process than the companies have planned on. "And then there's the price of the iPhone itself, and the need for a data plan on top of a voice plan," Hazelton said. "That's probably $80-plus a month right there. People will pay it if they want the iPhone experience, but moving forward, that may be simply too expensive." If the iPhone doesn't deliver on its promises, though, all might be moot. Dubbing it the "iPhone experience," Hazelton ticked off many of the same potential pitfalls as other analysts, ranging from the lack of a tactile keyboard to the slower speed of AT&T's EDGE-based data network. How users react to the iPhone, and how they expect to use it, said Hazelton, will ultimately be the most important determiner of success. Nothing will kill the buzz faster and brand the iPhone as a failure, said Hazelton, like negative word-of-mouth from the first buyers. And although the early adopters may be especially savvy about technology, one unknown could play a major role. "There are relatively few people who use smartphones in the U.S., and most of them are business users. This will be the first smartphone aimed at consumers," he said. "It's a complicated phone, basically a computer, and like computers, like Macs, it may crash, maybe a lot." Tales of iPhone problems, say frequent crashes, will turn Apple's hope into another Newton, Hazelton argued, referring to the 1993 PDA flop. In other words, there is much that may not go Apple's way after June 29. Ironically, that would make rivals unhappy, rather than glad to see Apple fall flat, Hazelton said. "The iPhone could open up the smartphone market to the U.S. consumer," he said. "When we talk to other device makers and carriers, they generally welcome Apple to the game. It makes sense. The iPhone raises the bar of customer expectations for what a cell phone is. If it succeeds, other vendors will have more ability to drive product upgrades, get customers to pay more for the device, and carriers will be able to get more people to subscribe to the more expensive plans." Apple will launch the iPhone Friday, June 29, at 6 p.m. local time, with the device available then at AT&T and Apple retail stores.
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Consumers planning to buy the iPhone at the end of the month will need an iTunes Store account to activate the device.
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SAN JOSE, Calif. -- Apple Inc. sold its millionth iPhone over the weekend, days after it slashed the price by a third to spur sales.
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Blog: Apple and AT&#38;T stores have started advertising the iPhone, promising "the wait is almost over."