An internal AT&T memo that was leaked today is full of very impressive number regarding the iPhone 3GS — numbers that once again show why AT&T’s exclusive contract with Apple to sell the iPhone in the U.S. is so important.
The iPhone 3GS’s launch gave AT&T its best sales day at its retail stores — ever, its second largest traffic day at retails stores, the most transactions it has ever processed in a day, the most orders through att.com in a single day ever and the biggest features sales day at att.com ever. Oh, and it led to the most upgrade eligibility checks ever, which is not surprising at all, though most were probably disappointed.
What’s crazy about all this though is that while many people were expecting the iPhone 3GS launch to pale in comparison to the iPhone 3G launch, it actually exceeded it in just about every way when it came to actual sales (at least through AT&T’s stores and online). The lines may have not been as long at stores because of pre-sales, but sales overall exceeded the 2008 launch day numbers, and all of the heavy holiday shopping times. And apparently iPhone 3GS sales exceeded the iPhone 3G launch day sales by noon Central time.
AT&T’s exclusive contract with Apple for the iPhone is set to expire next year. There has been a lot of talk about AT&T wanting to extend the deal for at least another year, but there has also been talk of Apple flirting with rival Verizon.
It seems pretty clear that Apple is getting up to the limit of where it take the iPhone with AT&T. The biggest complaint about the device now seems to be the service provider. And if it can sell millions of units in just days on just one provider, imagine what it can do if it were on two — or better, all of them.
Below find the memo. You’ll also note that on the day of Michael Jackson’s death, AT&T saw more text messages sent than ever before — exceeding even that of American Idol finales and New Year’s Eve. That’s pretty insane, especially considering what a rip-off text messages are.
1. Fact of the Week: On June 25, the day Michael Jackson died, text messages sent on our network spiked at 65,000 messages per second — the largest volume ever recorded — surpassing events like American Idol voting and New Year’s Eve, when millions of our customers wish their friends and family a happy new year via text.
2. iLaunch day 2009 was one for the record books, as AT&T customers scrambled to get their hands on the fastest, most powerful iPhone yet.
Here’s a look at some of the milestones we achieved:
- Best-ever sales day in our retail stores
- Second-largest traffic day in our retail stores
- Most transactions processed via our IT systems in a single day
- Most upgrade eligibility checks in a single day
- Largest order day in att.com history
- Largest features sales day in att.com history
On this year’s launch day, iPhone sales exceeded sales recorded on 2008’s iPhone launch day, Black Friday 2008 and Dec. 26, 2008 — all heavy-volume sales days. In fact, this year we surpassed 2008’s launch day sales at about noon Central time, and sustained our previous peak hour record, also set in 2008, for 11 straight hours.
[photo: flickr/Jen SFO-BCN]
Yeah, yeah, yeah. Now, if only at&t can sort their delayed visual voicemail issues. I am getting voicemails hours later on my iPhone. It’s a problem they are aware of. As I always say, at&t is killing the iPhone experience.
So dissapointed!
I too am having sporadically delayed voice mails. AT&T needs to also take a look at their quality of service protocols because while they have speedy 3G, it is not actually that reliable.
I feel that based on the recent feature announcements etc. from Apple was that the lack of MMS support on the original iPhone was more likely due to AT&T not being willing to rework how their data travels for the iPhone experience, and stuck to their guns of an old business model.
We can only hope that an iPhone on a Verizon LTE network can get closer to the true holy grail.
I’m getting the same thing in the UK on O2 – visual voicemail coming through hours after they are left, and sometimes delayed texts.
Never had a single problem with Visual V.M. on O2, since the first-gen iPhone. Both V.M. and SMS arrive in seconds.
Ah, I love MG Siegler articles
i will second that
they just keep getting better… more crappier more twitterier and applier
doughbag
And why Apple needs to kill the AT&T exclusivity.
You bet they need it! If I could take my iPhone to another carrier I would leave AT&T immediately! I advise anyone who asks that the iPhone is great, and IMHO better than any other smart phone I’ve played with but it is totally crippled by AT&T’s network. Generally I tell people that unless they’re totally in love with the iPhone not to bother switching to AT&T to get one. Please, please, please Apple open up to other carriers!
Apple can’t open it up to other carriers. They’re under contract until the summer of 2010, I believe. It’s clear that Apple desperately wants to move as far away from AT&T as they can though. It will happen, as soon as the contract is up.
Lets not forget that the Iphone is GSM. Verizon is not GSM. And when they do go GSM with LTE/4G, it will be very limited. Verizon should let Vodaphone run Verizon Wireless not Verizon. I know Vodafoine is a partner in Verizon wireless. They would have been GSM a long time ago. And the Iphone would have been there. I think here in the US T-Mobile which is GSM will have a great chance of getting the Iphone.
Well if they are doing so well then ATT should stop throttling our abilities to USE many of the iPhone features. No tethering and no MMS yet. Yes they claim it’s coming this ’summer’ but it’s summer now.
Loving my iPhone 3G S but if I had a _choice_ of carriers I would probably have gone with verizon.
Who would give that contract up? Millions sold in just one day of trading alone. I think AT&T would battle hard to keep that deal.
I think Apple should get rid of the exclusivity deal and role it out to all networks.
I have to say now you have a new iPhone 3G S come over to my website http://www.appgiveaway.com and bag your self some free apps that you’d have had to pay for
I just wish it was on Sprint
If only AT&T could fix their 3G connectivity in downtown San Francisco.
But what does AT&T do to keep their customers happy? Nothing! They are horrible at everything.
AT&T is awesome. I’d give them my firstborn if they didn’t ask for it already.
The only thing that makes iPhone awesome is the new Meta Flavor app. Without it iPhone users wouldn’t be able to search from 4 million menu items, 2.5 million photos and discover great new restaurants and dishes. I actually think it’s the main driver behind the sales of the new iPhone 3GS. Just my opinion though
thanks for the spam…its appreciated
Would have bought the iPhone a long time ago, if it were on Verizon…Main reason I haven’t even looked at it is because AT&T’s coverage is severely lacking in my area – SF Bay!
I think it would be good if the iPhone were partnered with more service providers. Maybe then we would get better service due to competition!
WOW MG. Did you actually write a post without mentioning twitter? I’m impressed
No Verizon. No Apple.
att is, i expect, excitedly scared about this success:
they need! to keep apple happy to keep the iphone on their network. but how much are they willing to let go to do it?
hopefully the fighting between them will be somewhat public. depending on you arrington to do this. should be good fun to watch.
I can’t wait until they open it to other carries. I am very interested to see the number of people that leave ATT as soon as they can. I would even wager that many people will pay to opt out early to leave them.
AT&T is the reason I DO NOT have an iPhone.
I keep hearing how amazing the iPhone is and I must say I am very interested inhaving one. However, it just so happens I’m on the sprint network and I have no plans of leaving it. If I switched to ATT I would never have cell service at home. Hopefully Apple will take a look at everything and decide to branch open to other cell providers like Sprint.
You have Sprint?
Sounds worse than the Swine flu.
Good luck.
It was fun for a while using the 2g on t-mobile’s free internet and 1000 minutes for only $50 a month. But now even with a jailbroken phone you cannot get the 3G frequencies to work ever. I will be forced to switch to a different phone (probably new android) before I would ever consider going to the hell which is AT&T
Hmmm …. I think I will short AT&T stock in spring of 2010
not a bad idea, maybe buy some put.
any idea if iphone on verizon will be cdma? i prefer gsm.
I have watched many of my friends deal with the 7th level of hell called AT&T too much to buy an iPhone. We had to buy a repeater for our office as AT&T has not been able (or cared) to figure out signal management in our area — Sprint, Verizon, etc have no problem.
AT&T’s foot dragging on new iPhone features is telling.
I am ready to buy an iPhone, but not on AT&T’s network. If the iPhone were on Verizon or Sprint, I would buy one now.
Free the iPhone!
Apple has forced AT&T to bend over backwards upgrading their network, allowing more data usage with movie downloads and such, and is now probably going to have to force them to reduce the data plan or offer a cheaper plan or something so that even more people can have the iPhone. I could see a lot more people using the iPhone if the data plan wasn’t $30/month…
MG you need to go back to highschool english, this article has about the same writing level and style level of a Freshman. Learn how to proof read.
I wrote a little piece about why the iPhone won’t be leaving AT&T’s clutches for a while. http://bit.ly/laZ1C
So many AT&T haters here… Personally and professionally speaking, each carrier has its problems and coverage issues. I use both Verizon and AT&T they’re both equally bad at customer service, and Verizon only inches out over AT&T in coverage. Verizon cripples all their phones. AT&T has rollover, saving me money year-over-year. More smart phone options at AT&T. Since I always call AT&T tier-2 support, I never wait more than 2 minutes on hold and they always solve my problems. Since Verizon doesn’t have a direct tier-2 support line, tier-1 always seems confused, overly polite, but confused nonetheless. To each their own.
Just like everyone else that doesn’t have an iPhone, I’m waiting for it to be on either Verizon, T-Mobile or Sprint. Anything’s better than AT&T in Austin!
Actually nobody and I mean nobody prevents Verizon and Sprint to sell iPhone’s. I can imagine they can freely place as big orders to Apple as they want and Apple WILL fullfill them too – why loose good money
It’s that the Iphone is GSM, Verizon And Sprint are not GSM
More bars in more places?
FWIW, I switched to AT&T to get the Edge iPhone two years ago and have had few complaints – no dropped calls, no voicemail issues. The people who are unhappy with AT&T (for good reason, no doubt ) yell the loudest, but in many areas, their service is as good as Verizon. Talk to someone in your area about network quality if you’re curious about getting an iPhone.
I also got original iPhone when it first came out, and never had trouble with coverage or voicemail. Now that I have a 3GS, however (my first 3G phone), I have trouble actually getting a 3G signal, even though AT&T’s coverage map shows my area fully covered with 3G. Most of the time I only have an EDGE signal.
I, too, am hoping that the exclusivity contract ends soon. I am not one for instant gratification but I cannot forgo this little gem for many more years!
You all think that Verizon will allow the iPhone to be “open”??
Since when have they allowed a phone to be “open”??
My RAZR had to be hacked just to get vibe&ring enabled. Verizon would kill the functionality if this phone.
My iPhone rocks
Apple. The only company on the planet that could have pulled this whole iphone thing off without an outright revolt…and they don’t need at&t to do it.
The iPhone offers the best browsing experience on any phone combined with the best multimedia offerings, and a zen like user experience.
I’ve bought two iPhones (for me and my wife), plus two iTouches as presents. Still, what I really really need is an iphone I can use in the USA and Europe with different SIM cards. I’d pay extra for that. I’m not keen on jailbreaking my 3G phone, but perhaps that what I’ll be forced to do.
Mark I agree with you. If they are so exclusive in signing up carriers (only 1 per country) they should allow the users to use their iPhone with other designated carriers Globally. Fine they run the risk of phones being bought for cheaper in other countries and being misused but to counter that, they can have the original carrier enable and disable your services within a month for roaming with a new sim of another designated iPhone carrier.
I think Apple should start signing up with different carriers at the same time. Create competition for the consumers to benefit which carrier they use – yes profit sharing might remaing the same for Apple or see a marginal increase but they will solve the issue of phone hacking and gain more with more users downloading from the app store.
What I find amusing is all these people complaining about the lack of 3G signal yet can’t wait for LTE to roll out – do you realize 3G has been rolled out for almost 2 years and it’s not even at 50% coverage yet? LTE will BEGIN to roll out end of 2010 with decent coverage not until 2012 (or later). I’m really interested to see how roaming chargers will look as you switch to another carrier LTE signal.
Apple has is very good with at&t, their getting a nice chunk of change with every iPhone sold. They will have to give that up – which I’m not sure their eager to do as Verizon will not allow half the crap they want. So if you think your nickel dimed now .. be careful what you wish for.
I can’t see them even bothering with TMO or Sprint as they have such a small market share in the states though both do have cheaper plans that could help drive more sales.
The biggest thing impacted iPhone is the same thing that impacts all other smartphones – there is just so many people willing to foot a voice / data plan. After the upgrades are done – lets see the month to month sales trends as every other iPhone dropped off – until the next OS / model came out.
I live in Ireland. Who is A T & T?
(Still no Flash, no widgets, no PDFs ~ No Adobe support!)
The iphone on T-Mobile imo = perfect phone with best service. I had TMO for 3 years, plans were the best priced, customer service was always kind, honest, and effective, and I encountered very few dead zones anywhere I’ve gone in the USA. TMO has the GSM 3G network! Yea, people jailbreak the iphone to use on tmo but they can forget upgrades then. So Apple, end your beauty-and-the-beast relationship with AT&T – please go TMO!