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.