Multiple reports have begun surfacing today confirming that AT&T has pulled the iPhone from sales online to customers living in New York City and surrounding suburbs with no official explanation available at the time of this report, while sales continue as normal across other AT&T markets in the country.
Historically, New York City, San Francisco and the L.A AT&T markets in the US have suffered constant network issues stemming since the launch of the device due to the increased data usage of iPhone users compared to other devices from AT&T on its underdeveloped 3G network in those cities and markets.
This marks the first time that AT&T has silently pulled its most popular smart device in order to deal with entrenched network/data issues in a major market as the carrier has also rebanded 3G access to 850 MHz in order to improve service with mixed results.
Update: AT&T has resumed online sales of the iPhone in New York City and surrounding suburbs with no official explanation regarding the recent halt in online sales.
Update: AT&T has provided two conflicting explanations for the pulling. Their initial explanation cited capacity issues, which concurs with what sources had been provided. AT&T feared adding additional iPhones to UMTS would have caused serious breathing effect issues. Later in the day, AT&T now claims it was due to high levels of “fraud” related to the unlocking and sale of iPhone 3G and iPhone 3GS.
Apple can’t be happy about that. I can’t imagine this will last long.
When is AT&T’s exclusive contract up? I just can’t imagine either party wants to renew it if AT&T is pulling the device from the largest city in the nation.
Speculation and rumors vary, but the exclusivity deal is expected to end sometime between June 2010 and January 2012.
Apple has said they wish to renew the agreement with AT&T, but it may be grandstanding to secure a two-carrier agreement between AT&T and Verizon. Such an agreement would lock out Sprint and T-Mobile, but continue to give Apple price control over iPhone. It would also allow Apple to pursue a single 4G strategy around LTE.
With iPhone using LTE exclusively for a 4G network, Apple would be in a unique position to revive their plans for an MVNO, one that pools AT&T and Verizon’s LTE footprints as they grow.
It will be interesting to see if Apple has any comments regarding the iPhone being pulled in New York…
I imagine the execs at Apple were probably livid when they found out about the iPhone being pulled in the nation’s largest city.
Personally with the fcc possibly imposing fines to companies with devices that they can only carry might keep at&t from being sole carrier of the iphone. I had a iphone and personally there are better devices out there than it. The future we hold if apple with work with verizon. Personally if they do, at&t will lose millions of followers due to lack of network coverage and capacity!!