Apple and AT&T in cahoots over fake iPhone shortage?
- July 11th, 2008
- 36 Comments
Just got an interesting tip from a reader. I wasn’t there and I don’t know what happened, but apparently one of the AT&T stores in my neck of the woods has some iPhones in stock but can’t sell them until tomorrow because of some cryptic agreement with Apple. They’re taking orders for the phones today, but won’t sell them. Weird.
“Editors,
I went to the AT&T store in Waltham, Mass at 9:45 (15 minutes before it was scheduled to open according to their site). There were about 6-7 dudes in line outside and one told me that they were quote out of iPhones and only taking orders for delivery in 5-7 days. Thinking that he was just being an asshole I decided to stay in line. My decision to stay in line was confirmed to be correct as I watched a couple of customers trickle out with their new iPhones.
10 minutes later the line had grown to about 10 (including 2 women!) and then the manager came out, invited all of us in for the moment we had all been anticipating for months. The store had obviously prepared itself for the crowds as it was fully staffed and a large cooler of complimentary (non-promotional) Dasani bottled water was being emptied out and handed to me and the other excited shoppers.
Then, things took a turn for the worse! Way worse… The manager got up in front of everybody and asked who was here for an iPhone. He then went on to explain that the store was only able to take orders for iPhones that would be delivered to the store in the next 5-7 days. They would take our money and when the iPhones came in we would get a call to come in and pick them up. If they were not picked up in a week, they would be shipped back and the charges reversed. He also said — and this was the kicker – that he had more iPhones in stock but he could not start selling them until Saturday morning due to his contract with Apple! And those would be on a first come, first served basis. In other words, Apple had manufactured a sell out of iPhones for the first day so as to generate “every store sold out of iPhones” hyproganda.
It’s one thing to actually sell out of your product. It’s another thing to manufacture a sell out of your product. In the age of YouTube, bloggers and accelerated word of mouth, companies must be punished for pulling this type of disingenuous shit.
I am pissed at Apple for taking me for granted! I loved my iPhone and was willing to shell out several hundred dollars for a 3G on Day 1. I feel used. Like a chump who was turned away so Apple could get a nice sound byte on the news and the Blogs. I am so angry that I am planning to vote with my wallet… I am going to wait and buy the BlackBerry Bold which is coming out next month. So long as BlackBerry doesn’t pull the same shit.
Best wishes,
Mark J. Feldman”
Thanks for sending this in, Mark. Keep us posted.




Cory (Who am I?)
3 months ago
Hey Mark… would you like some cheese with that whine?
Reply
Murray Williams (Who am I?)
3 months ago
Hey Cory, would you like a flashlight for your life under that bridge…?
Cory (Who am I?)
3 months ago
Dear Murray (and Mark),
I sincerely apologize for failing to validate your need for an iPhone. Clearly, life as we know it has ceased to exist because Mark J Feldman and thousands of other people did not get a 3G iPhone on its launch day. He might have to wait a couple of weeks to get one! Oh, the humanity! I was insensitive with my remark, and for that, I hang my head in shame.
I too wanted an iPhone. I considered getting up at the crack of dawn to wait in line for hours on end. I even considered camping out in front of my local AT&T store the night before. But then I realized, I had a life and a wireless phone before Apple graced the world with the iPhone, and I will continue to have a life and a wireless phone if I do not get one the day it launches. But just because I have a life, it is unfair of me to assume that you and Mr. Feldman also have a life, and for that I apologize.
windexh8er (Who am I?)
3 months ago
Same thing is going on in Minnesota. All of the ATT stores only have, maybe 100-200 units (for sale). But the Southdale Apple store is stocked with over 1000. I stood in line for 4 hours at the Apple store there and finally got my black 16GB unit. There were a lot of pissed of customers in front of me who wanted the unit, but didn’t have a first gen, that didn’t qualify for the subsidized price. Some were only days away from the “upgrade” price — yet Apple couldn’t do anything and when they asked the employees were directed to buy it from an ATT store (of which were obviously all “out” or holding back until the weekend to sell remaining stock). All in all I think Apple should have handled this a little better (activation-wise). Some people who were buying in the store were being told they had to wait the 45 minutes to actually get the phone activated via iTunes. After I paid for mine I just walked out with it unactivated and did it at home… Nobody said anything to me, and since I paid for it who’s to say I have to stay there and wait.
Whatever Apple — just get your stuff together. The phone was worth the wait for sure. The audio quality is far better than my original phone. So I’m stoked to have the new model.
Liam (Who am I?)
3 months ago
They sold out in my home town, apparently they will get more in over the weekend if not Monday. Probably sounds right for Apple to boost hype.
Rizzo (Who am I?)
3 months ago
Yeah…I heard it was the same at our store. The patrons were told they’d be getting some in on the afternoon truck that were available for anyone wishing to come back in on Saturday. They couldn’t pre-order those, they just had to come back in on Saturday and try to get ‘em then. classy. AT&T also said they weren’t allowed to tell the line how many they had received due to “security concerns.”
Apple über alles!!
iJah420 (Who am I?)
3 months ago
I have a hard time with this RUMOR. Even if it is true S…..O WHAT. Apple will make more.
It just amazes me how impatient people are today. GIMME NOW! I WANT I WANT IWANT. gimme gimme gimme.
WA WA WA.. BOOO HOO HOO… Good GOD MAN! GET OVER IT!
iJhah420 says maybe some CRACKERS TOO….have a grateful weekend.
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Ryan (Who am I?)
3 months ago
Bring on the backlash
MacShill (Chris McCaw) (Who am I?)
3 months ago
I’ll wait for the more functional BlackBerry Bold, tyvm. ;-) Even then, I’m going to gouged by the providers (Rogers, here in Canada). Sorry to the author of this story, but this hoopla is proof Macophiles will act like sheep and buy w/e high-priced new product that’s but before their eyes just because it’s made by Apple.
Bob (Who am I?)
3 months ago
This is completely true. I know someone who sells phones for AT&T. Their store has hundreds of iPhones in stock, but per Apple’s orders that store is only allowed to sell them at a rate of 40 per day. They sold the 40 in the first hour and a half today and everyone beyond the 40 had to pay to get one shipped to the store in about 5 business days. Little do they know that if they came back tomorrow morning another 40 will be available on a first come, first served basis. Talk about mistreating customers! But of course, all of the Apple fans drank the kool-aid long ago and won’t be deterred. The main reason behind all this? Even though it’s a really busy AT&T location there is an Apple store in the same complex that has over 1,000 in stock. Apple gets $240 commission per new iPhone line sold as an “indirect” dealer for AT&T. It’s quite a bit more profitable for Apple to force people buy them directly from Apple. Why Apple’s customers never seem to catch on to their silly games and questionable business practices is beyond me.
Murray Williams (Who am I?)
3 months ago
I had the exact same experience with the AT&T stores in Arkansas. Manufactured shortages….BOOO! I was told the same thing by the time I got to the front of the line. That there would be stock for sale on Saturday, but even if you pre-ordered today, those Saturday phones would still be first come, first served.
So, what that means is not only did AT&T and Apple manufacture a false shortage, they also are trying to parlay the waiting in line phenomena for at least another day.
Booo! Bad tactics, and yet, I am going to buy one once this false shortage is over.
Come on AT&T. I am losing faith.
William (Who am I?)
3 months ago
Given the problems we’ve had (globally, I’m in the UK) with activation issues via iTunes being “times out”, it makes PERFECT sense - logistical and PR - to restrict the number of units sold on day one. It’s impossible to sell to people on one day and say “oh, but if you could just hang on 24 hours to activate”.
Bob (Who am I?)
3 months ago
I don’t know about the U.K., but at least in the U.S. Apple is only forcing a sales cap on AT&T stores. Apple stores are permitted to sell their entire inventory on the first day, time permitting (which is over 1,000 phones in a single store in a lot of cases). Over here Apple is not trying to restrict sales for logistical or PR reasons as you suggested they might be. They are only restricting AT&T store sales so they get the double bonus of free fake shortage PR and higher profit margins from commissions. It truly is remarkable how fiercely Apple fans will defend anything and everything Apple does, no matter what. If Apple decided to sell iPhones for double the cost and double the contract length I honestly believe there would still be some (albeit few) Applephiliacs rushing to their defense. It’s truly amazing.
Rick (Who am I?)
3 months ago
Similar experience here at AT&T. I didn’t care if I got one for today. Waited till the lines were gone (sold out) and went there at 1 pm to preorder per AT&T’s web site. I’ll spot Apple their one day of free advertising and viral marketing via long lines and local news stations. When I tried to preorder, I was told the preorders were “sold out” but I could return at 7 am or before (to queue) and probably have a phone by 9 am tomorrow. Preorders would not be offered again until tomorrow’s batch sells out to those who wait in line. The person just ahead of me received a preorder, I was the first denied. The line is staged. They may not have enough phones for everyone, but neither is it first come first served. The person ahead of me that appeared physically and paid in advance will get theirs in a week. The person that waits on line for 2 hours tomorrow will get one ahead of her. That stock of phones is reserved as “line bait” rather than be committed to those who already paid today. How would you feel if you waited 5 or 6 hours today and were told to prepay for 1 week delivery and the people who show in the morning get served?
Mark J (Who am I?)
3 months ago
We are buying a couple of iPhones for business use through an AT&T business relationship managed by the husband of one of our employees. We were told we could not have an iPhone today — it would be sometime next week — because AT&T wanted to make sure they had plenty of stock on hand for customers who had waited in line to get one on the first day. They are getting additional shipments in next week for their commercial accounts.
So I don’t think there is a “plot” in place at this particular outlet, but of course it is just one location. I doubt Apple needs to “manufacture” a shortage to hype their publicity. They are getting it anyway.
Girish (Who am I?)
3 months ago
Never expected this from Apple.
zeasar (Who am I?)
3 months ago
Listen to yourselves, this shit doesnt make sense. So Apple is forcing AT&T to NOT sell more then 40 iphones so more peopl will go to Apple and they gets more commission out of it??
I would believe that if AT&T was the phone maker. If that really is the case, then why not just limit all sales of the iphone in Apple stores only??
Bobby (Who am I?)
3 months ago
Mark,
Screw you- you whiney little brat. Go get yourself a Blackberry and shut the h$(( up. Gimme a break, it’s a freakin phone. It may very well be the best one on the planet, and I’m sure that I’d like one, but I’m not going to take a minute of my time whining about it. Nothing to see here,move along…
MacShill (Chris McCaw) (Who am I?)
3 months ago
haha Spoken by a true dolt who’s gone out and purchased every Apple creation and is feeling a little defensive and exposed. ;-) It’s people like you that keeps the Steve Jobs pig fed.
Kile (Who am I?)
3 months ago
Cry me a river Mark.
You’re willing to wait in line for the dubious privilege of being able to one up your friends and yell FIRST like every other forum loser. You have a working iPhone yet you feel slighted because Apple and AT&T doesn’t recognize the depth of your commitment and hand you a new iPhone within hours of its release.
In the words of William Shatner: “Get A Life!”
MacShill (Chris McCaw) (Who am I?)
3 months ago
Kile is right. You know these enthusiasts are eager to do just what Mark did do.
Debbie (Who am I?)
3 months ago
… and you are surprised that an extremely “over controlling” company… would “create” a sell-out?
They can do what they want.
They have the Iphone… and you want one.
You will put up with ANYTHING… and pay ANYTHING… in order to get one.
D (Who am I?)
3 months ago
Apple had a chance of finally breaking the cellphone providers’ unholy practices when it came out with a ground breaking device. But parochial Apple (I never thought I would use this word for Apple) ended up being their ‘drinking buddy’ rather than standing up for customers, or even for its own name.
All monopolies are bad… it does not make a difference if its names begin with ‘M’ or ‘A’.
Michael (Who am I?)
3 months ago
Punish them with your wallet and don’t get it. Also, how about the false advertising about the phone being at $199 when that price is only for people who can uppgrade….That groups represents no more than 20% of the total customer base!!!!
Joshua McFadden (Who am I?)
3 months ago
Same issue here in SLC Utah. There is an At&T corporate store next to the Gateway Apple Corporate store @ The Gateway Mall IN Utah. Of course they were people in line at both stores 80 to 100 at At&T store and 450 at the Apple store (just to start). Of course as everyone else has stated the AT&T Corporate store “Ran Out”, which to my knowledge they really did. So I switch to the line at the Apple Store for the rest of the day. At lunch I took a walk to the food court (which is next to the AT&T corporate store to get lunch. On the way back I took the service hallways and elevator (because I use to sell food to the restaurants in the food court for Sysco Foods) and would make my walk shorter back to the Apple store line.So who do I bump into in the elevator ? The Fed Ex Man delivering 4 cases of iPhones to the AT&T Corporate store. obviously I follow him to the corporate store and ask if I can buy one! The answer was no not until Saturday morning”Under their contract with Apple”. So I hang my head and go back to line and share my experiences( about 11:30 am). At 5 pm I finally made it to the front of the line and a gentleman bought my place in line for $200. Who was I to turn him down. So on the way to the car I decide to go by the AT&T Corporate store to see if I can see if anything had changed since lunch. I corporate rep for AT&T greeted me at the line inside (not the same person as earlier). So I asked when they would be selling the shipment they received at lunch. They Manager looked at me like he was caught at something and said we didnt receive anymore iPhones today. At that time the Sales rep that I met when I followed the Fed Ex guy at lunch, said ” He know we have more he followed in the FedEx man earlier. He was like OH THOSE they will go on sell tomorrow at our normal hours. “First Come First Serve”, I just laughed and walked out because I had $200 in my pocket and would return in the morning and purchase one!
Thom (Who am I?)
3 months ago
Why don’t you just go the the damn Apple store then? Same price, same phone. I love America but damn we’re just a bunch of babies who don’t want to solve their own problems. Obviously you want the phone. Go to the Apple store, get your product and be done with it.
Next time write Ralph Nader.
I hate people.
Bleh (Who am I?)
3 months ago
You people who stand in line for an electronics product that is a commodity where they will manufacture as many as they can sell are pure idiots.
mccawentertainment (Who am I?)
3 months ago
What does being first really get you???
Some Dude (Who am I?)
3 months ago
I am absolutely convinced that Mark (and the manager) are accurate and these are fake sellouts designed to keep the hype alive. It seemed incredibly obvious to me yesterday afternoon when I went past *two* AT&T stores in the Los Angeles area with nice, pre-printed “Sold Out” signs in the windows. Those really brought it home.
Donate iPhone (Who am I?)
3 months ago
Donate iPhone An Eco Friendly Initiative
You got a new shiny iPhone…That’s Great ! … But what about your old iPhone? Don’t worry, just DONATE at http://www.rubarudirect.com/iphone/
There are millions of people waiting for this… just do it…
Donate iPhone (Who am I?)
3 months ago
Donate iPhone An Eco Friendly Initiative
You got a new shiny iPhone…That’s Great ! … But what about your old iPhone? Don’t worry, just DONATE at http://www.rubarudirect.com/iphone/
There are millions of people waiting for this… just do it…
Snakes on the Plane (Who am I?)
3 months ago
It’s funny I had a similar experience when I bought a Wii back before the holidays dec ‘07. Perhaps this is a format that companies use to hype their products’ demand.
The weird thing with Nintendo at least is that ~2 years after it’s launched Wii/Nintendo still has this “shortage”? The bull shit meter is breaking…..
Snakes
Adam S (Who am I?)
3 months ago
Wo, it appears Crunchgear users are a bunch of a-holes.
I think it’s totally possible. Apple definitely shipped LOTS of phones for Sat delivery. WHY? Why not just deliver a larger shipment for Friday’s launch?
Obviously, to create the impression of incredible demand.
For the record, every computer and computer-accessory in my house is Apple.
inter (Who am I?)
3 months ago
wow!! you people in US are lucky with the iPhone availability; for instance, here in Switzerland in the first day we had something like 15-20 iphones per shop!!! of course everything sold in 2 hours and according to many shop managers we can expect the next availability of iphones in 3 weeks!!! 3 WEEKS!!!
Horace Manure (Who am I?)
2 months ago
I gave AT&T a $150 deposit last year despite having a credit score about the national average. This year, I got my deposit back and planned on purchasing a new iPhone for my wife.
We got that check - and there was no interest! AT&T, a billion dollar company kept the interest from my deposit!
What a scam.
I will get my iPhone eventually, but I will jailbreak it and use it on another network. And in another year when my original contract is up - I will be leaving AT&T.
Wiretap that motherf*ckers!
Nicolas (Who am I?)
1 month ago
Thom, America is a continent FYI.