Supplies of the new iPhone were generally plentiful on the first full day of sales, with just 24 stores of 185 stores reporting that they are out-of-stock at the end of Saturday. Of those stores, 18 stores were located in California, Apple’s home state. The San Francisco Apple store had to turn away willing buyers of the new iPhone starting at about 7:45 p.m., when the last buyer purchased the remaining iPhone, wiping out an undisclosed number of iPhones delivered by Fed-Ex to the store on Friday afternoon. The Corte Madera store, one reporting no stock, had seven iPhones at 5 p.m., and sold four within one hour. Apple’s iPhone availability page is updated daily with stock reports submitted from the stores, and posted at 9 p.m. (PDT). Cnet reports that AT&T stores the surveyed were supplied with just 30 to 90 iPhones for first-day sales, and a spokesman said they were “virtually out” of iPhone stock by Saturday morning. Check the out-of-stock store list after the break. read more…
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AppleCare service for the new iPhone will be offered within two weeks at $69 for one year of service. Until then, Apple’s Genius Bars are accepting reports of product problems, and will be generous in their application of swap-outs for new iPhones. As with other Apple products, accidental (or even deliberate) damage is excluded from the interim or AppleCare policy.
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There are no constraints on the supply of iPhones at Apple’s retail stores, according to in-store reports and Apple’s own on-line availability application. Every single stores is showing “green” on the availability page by Saturday afternoon (PDT), and has been since the iPhone first went on sale at 6 p.m. Friday. Field reports indicate that AT&T store lines were longer than at Apple stores, but only because the purchase process was taking longer. The eBay market seems to have collapsed: there are scores of no-bids on completed auctions Saturday as potential buyers realize they can pay retail price at a store. Unexplainably,hundreds of new eBay iPhone auctions have active bids ranging from $699 to $1,325 per phone. Many of the product photos are duplicates, indicating sellers with many phones. Also, most of the auctions are shorter (2-3 days) than eBay’s standard 7-day duration, indicating that sellers anticipate a declining market. An technical analysis by Corey Spring shows only half the auctions ended with a winning bid on Sunday, with barely a $50 profit. Check my iPhone debut report for links to stories and videos of Friday’s event.
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The 10ZenMonkeys Web site reports that Apple has anticipated in-person customer complaints at the retail stores about the iTunes registration for iPhones. Employees have been told to be courteous, polite, and apologetic, but to suggest they return home and try registering again. But, “Under no circumstances will they be allowed to activate their phones in-store,” the Web site claims.
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The waiting lines for Apple’s iPhone never reached huge lengths, according to reports, and they dissipated rather quickly, leading to speculation if the company would beat some analysts’ projections of selling 400,000 iPhones in the first 48 hours. As well, Apple’s own availability Web page Friday night shows no stores without iPhones. A Fed-Ex delivery to the Palo Alto (N. Calif.) appeared to show somewhat more than 500 iPhones, but only about 424 were on display at the Genius and Studio bars when the store re-opened. Even so, if all of those initial display iPhones were sold in equal numbers among all AT&T and Apple stores, the company would easily surpass the analysts’ forecast. An ample supply would kill the secondary market for iPhones, such as on Craigslist or eBay. Although there were some successful line-sitting deals made, there were others that ended with no money changing hands at all.
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The customers who waited in line overnight for the iPhone event at the Palo Alto (N. Calif.) retail store were rewarded with the appearance of Steve Jobs inside the store, and he was joined in an animated conversation with legendary Macintosh programmers Andy Hertzfeld (l.) and Bill Atkinson (r.). Atkinson joined the waiting line on Thursday evening, but it’s not clear when Hertzfeld arrived, iPhone already in hand. Both men worked for Apple in the seminal days of the Macintosh, are are generally credited with leadership in developing such programs as QuickDraw, MacPaint, HyperCard, and many of the operating system elements, such as the Control Panel and Scrapbook.
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I’ve arrived at the Palo Alto (N. Calif.) retail store for the iPhone debut, and found that 39 persons were already in line since 9 a.m. this morning. The first 20 in line are mostly buyers, but there are some sellers who expect to make $200-$300 per phone. Zooomr.com has live video from the front of the store. Check my iPhone page for other details.
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Apple announced that 164 of its retail stores will stay open until midnight on iPhone day, and that each customer can purchase up to two iPhones each. The late openings reflect areas where mall policies and local zoning laws allow stores to extend their hours. Apple also said that on Saturday the stores will offer free in-depth workshops on the iPhone, support at the Genius Bars, and One to One training sessions. Apple has posted an on-line availability report that will be updated each night at 9 p.m., and which shows where iPhones are available. Check my on-going iPhone report for on-going info.
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The AppleInsider Web site reports that at least two store employees will be staying inside each retail store Thursday night ahead of the iPhone debut, but the company had not explained to staffers why this is being done. In fact, it’s because iPhones have been arriving at some stores already, so at least one manager and another volunteer will perform the all-nighters to provide an additional layer of security beyond mall security teams and the local police.
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A shopping mall concierge desk has revealed more details about how the iPhone sales might be handled this Friday, although it’s not clear if the policies extend to other locations. According to the modmyiphone Web site, an unnamed mall will be handing out 500 wristbands at 5 p.m. to insure fairness in selling the phones. The report sounds plausible: previous retail store events have demonstrated Apple’s interest in providing a safe and fair experience, although previous pay-offs haven’t been as super-hyped as the iPhone. Also according to the concierge, the first 50 persons in the waiting line will enter the store at 5:50 p.m., with additional groups of 50 admitted to buy their iPhones until the entire 500 iPhones in stock are sold, regardless of the hour. Based on those numbers, the Apple and AT&T stores would sell about 992,500 iPhones on the first day.
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Apple announced that its retail stores will close at 2 p.m. local time to allow employees to prepare for the 6 p.m. debut of the iPhone. The time will be used to prepare iPhone displays, make sure that POS software and sales procedures are in place, and to prep the staff on the iPhone and its features. The extended closure means that anyone who needs Genius Bar assistance must arrive very early in the day, or wait until Saturday for help. read more…
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In announcing rate plans for its new iPhone, Apple confirmed that its retail stores will only be selling boxes of the new devices, and that the usually-lengthy in-store activation process will be performed by the customer at home using iTunes. The revelation means the purchase process will be vastly streamlined, and the customer will have the pleasure of unboxing the stylish iPhone him/herself. Apple has even posted a video explaining the activation process, which works on both Mac and PCs. The process includes the ability to transfer your existing telephone number from another cellular carrier (number portability). The video mentions that you may receive a “credit check code” from the Apple store, which you enter into the iTunes registration form instead of your Social Security Number. That feature indicates that some customers–perhaps those with Apple credit accounts–can skip AT&T’s usual credit check requirement.
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The strangeness has begun for the iPhone debut on Friday: two persons have formed a line at the Fifth Avenue (NYC) store, according to the Vicariousmusic Web site, and a flickr photo shows one of the men holding up a sign asking for donations. However, a brief video interview with Greg raises suspicions about his motives. When asked what he first do with the iPhone, Greg replied, “See how it works.” He admits to not owning a Mac or iPod. No other lines have been reported across the country. The photo of the Fifth Avenue store shows 10 to 12 sections of bicycle fencing stored on the sidewalk, intended to regulate any line that forms for the iPhone. read more…
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The iPhone window display is a model of simplicity, with an oversized iPhone seemingly operating as a real device, suspended in front of a white backdrop that states, “Coming June 29th.” Check these photos of the display and how it’s put together.
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Apple has scheduled a second store to open at the same time as the iPhone debut: the Bayshore Town Center store in the north Milwaukee (Wisc.) suburb of Glendale. The Apple store is located in space C24, part of a new $200 million expansion and redevelopment of the mall that resembles Main St. USA. The store will open at 6 p.m., the same moment that iPhones go on sale, and there will be the usual commemorative T-shirts and prize sweepstakes.
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