The iPhone Odyssey

Let's just start by saying, that I did not get an iPhone last night. At 5:45 I decided to head out the nearest AT&Terrible store to look at the iPhone... you know see if was actually a useful piece of technology.

I arrived at my destination at 6:00 exactly and I was greeted by this a line that wrapped around the building, it looked something like this:

iPhone Launch, standing in line

Not too bad for little old Lexington, Kentucky. By the end there were around 100 people in line, and the store only had 70 phones. Surprisingly there weren't any riots when they ran out.

Want some free water?

Next to the store is a Jewelry store, and two of the employees came over and passed out water to those of us in line, and tried to get people to fill out credit apps for a credit account at the store... silly people. Here's a shot of the two "water girls":

iPhone Launch, standing in line

The most intriguing part of the experience, was the AT& Terrible store manager and his loose lips as it were. He spent most of the time telling us all about how Apple is running the show. It never ceases to amaze me how Apple guarentees things like "shortages" and "sell outs".

The nefarious plot

It seems that one of the stipulations from Apple is that AT&T can't do any stock balancing. For those of you who have not worked in retail before, most stores like this will balance inventory in the days after a launch like this, by shifting merchandise from a low volume store to a high volume store.

Apple expressly forbid this practice with the iPhone. Why would they do that you ask? Simple. It creates an immediate shortage of product in the areas that are likely to talk about it. The coming week will feature stories about how the iPhone demand greatly outpaced availability. Apple will have another "must have gadget" that sold out in 30 minutes.

When I left the store at 7:46pm, I heard the manager say that two smaller markets in Kentucky had between them, 80 iPhones just sitting doing nothing. The way it stands, that is exactly how they will stay, since most store managers will not go to the trouble of telling potential customers to go somewhere else for their phone.

The bottom line

So, am I going to get an iPhone? The way it looks now, yes. Having played with one, they are as amazing as the hype leads you to believe. I still don't think they are worth the price tag, but I haven't found a phone that can compete.

I don't plan on buying one for another month or two so who knows, I might find one. I intend to keep looking.

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  1. personal avatar Joel
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    June 30, 2007

    Yep, I'm with you Chris. But for me, it's the combination of the price tag and the fact that I can't get it without the two year agreement. I just got out of mine with Cingular/AT&T.

    After reading articles like this one, I'm kind of glad I didn't get one last night (yes, I waited in line, but left cause I couldn't stand the 102 degrees anymore thatn 45 minutes). I would have been really, really frustrated - and I don't wanna be. Anyway I'm off to the AT&T store to touch one for myself. Yay!

  2. personal avatar Alok
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    July 1, 2007

    Not doing stock balancing will make sense if:

    * The stock is a costly piece of merchandise, which the iphone is.
    * There is an expected heavy demand for this product, which the iphone has
    * It is easier to take note of stock and adjust supplies later one, which in this Internet enabled world is very easy.

  3. personal avatar Usayd
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    July 2, 2007

    Yep, it is common practise for companies to purposely supply less than required in order to try and keep the hype up for as long as possible, thus producing a higher ultimate demand. Especially common with game consoles.

    I'm not sure about the iPhone, but perhaps thats just my dislike of apple as a company. Dunno when they'll be coming round to the UK....

    Loving the new design of the site btw :)

  4. personal avatar Eugene
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    July 3, 2007

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  5. personal avatar Michael Pate
    Stroll on over and visit Michael Pate
    July 3, 2007

    Leo Laporte said his Petaluna, CA AT&T store had 60 phones. Chris Breen stood in line at another that only 30 (20 8GB and 10GB) so while there may not have been stock balancing, it appears different stores did get different amount.

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