BusinessWeek:
An AT&T Mystery: Abrupt New York iPhone Shutdown
A halt in iPhone sales around New York on AT&T's Web site stirs fresh concern that its network is too frail to support U.S. urban smartphone traffic
A brief halt in online sales of the Apple iPhone in the New York area kept alive concerns that AT&T's network isn't up to the task of handling smartphone traffic in some of the largest U.S. cities.
Customers who shopped for an iPhone on AT&T's Web site and gave ZIP codes for areas in and around New York City were told that the device was unavailable during a period starting on Dec. 27 and lasting until the afternoon of the following day. Sales of the iPhone through AT&T (T) and Apple (AAPL) retail stores in the New York area, as well as via Apple's Web site, were unaffected.
AT&T offered little explanation for the halt in sales, and Apple kept mum on the subject. "We periodically modify our promotions and distribution channels," AT&T spokesman Fletcher Cook said in a message sent via e-mail. Some analysts speculated that the change, however short-lived, was further confirmation that AT&T's equipment is too flimsy to handle the heavy data use typically associated with the iPhone. "Clearly AT&T is struggling with quality-of-service concerns," says Rich Doherty, head of the Envisioneering Group, a research firm. "It's the first time I'm aware of this happening with any wireless product." Apple representatives didn't return repeated requests for comment. [More]
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