I wish this blog was a raving (or scathing) review of the iPhone 3G, but alas I’m back from four hours in line at AT&T with nothing to show but a receipt and the promise of a shiny, new 16GB iPhone to come within the week. I’m certainly not alone either – with only 40 phones in stock at my store of choice, upwards of 100 people left in the same position.
For as many eager buyers as there were in line, there were just as many rumors and misconceptions about the iPhone making their way up and down the line. Most people waiting had questions concerning the contracts, switching providers, adding to their family plan and, more than anything, how much they would actually be spending. Most of those without questions, were relying on rumors they’d heard in the blogosphere: More shipments were coming that afternoon. (Probably not.) You could order it online within the week. (No.) You didn’t have to have an AT&T contract if you paid more out of the gate. (Nope, not yet.) Tight-lipped AT&T employees weren’t offering many answers either (although as one pointed out, Apple doesn’t like to reveal that much to them).
Most the confusion centered on the actual cost of the device, and according to Piper Jaffray analyst Gene Munster, the uncertainty might be justified. Munster predicted that only 35% of buyers will actually get the $199 price that has caused so much buzz. In a research note, he said that “though Apple advertises the 8GB iPhone 3G will sell for $199, we estimate that the average entry level price point will actually be $407.” Based on a survey of 200 mobile phone users, the firm found that a majority will not be eligible for AT&T’s subsidy and the activation fees that AT&T will be charging.
Munster predicted that because of this most buyers will wait until their contract on their current carrier expires, or AT&T subscribers become upgrade eligible. If Chicago stores are any indication of the handset’s success, however, sales for day one weren’t hurting. Granted, the supplies were low, but the demand still exceed it. More than 300 customers waited at Apple, the first arriving in the rain before dawn. Despite customers’ confusion, all were eager to get the new handset – some regardless of price or the fact that they had a perfectly good one in hand, some already equipped with new games and features from the app store launched yesterday.
AT&T wouldn’t reveal much to their confused customers. More shipments are coming, but they wouldn’t say when. Stores sold out – first of the 16GB black model, but they wouldn’t say how many each had. Considering this, it will be interesting to see if day one sales really are diluted as Munster predicts, or if it just the information given about the handset that proves to be diluted on launch day.
Did you brave the crowds and get an iPhone 3G? Have any initial reviews or launch-day stories? Please post your comments below.

I was at the AT&T store in Chicago where I sat at position 50 out at least 200. Was there at 6:30 and had made it to the front of the line by about 10:00. At that time, while waiting next to go into the store, a rep came out and said that the last one had been sold. They also wouldn’t tell me how long it would be before the next ones would arrive, but I couldn’t help but leave with a bitter feeling towards the entire process and the arrogant employees at AT&T that withold information from new and existing customers like it’s a matter of national security. It’s a phone, the least they can do is come clean with people and not waste any more time of anyone than they need to. Sorry to hear you went through the same experience, but anyone standing in those lines in the first place goes in knowing that its all a part of the big hype machine that Apple prides itself on so dearly.
I went to the local ATT store today 7-14-08. They had none which I figured would happen. I had gone Saturday afternoon to ask when the next batch would come in and was told Monday morning. That sounded fishy to me.
Anyway I payed $500 and change to put one on order (I am a current ATT customer and upgraded my phone last year.)
Now I am just wondering how long it will take to get it delivered
I would rather put the money toward filling my gas tank!
I actually have a POSITIVE story to tell about my iPhone 3G buying experience (probably biased by the fact that I got the very last one from my local AT&T store on launch day). The store manager was very open and honest with giving the crowd information and keeping us up to date (how many phones were left, who in line could expect to get one and who would have to come back or do a “fulfillment”, etc). The manager was friendly and did a great job of keeping the mood calm. I sure as heck wouldn’t want to have been in charge of an AT&T or Apple store last Friday, and this guy did a fantastic job!