Ian Paul, PC World

Apple iPhone 3GS

The iPhone 3GS is hot according to AT&T. No, I’m not talking about the overheating issues, but a alleged leaked memo from the iPhone’s exclusive U.S. carrier. In the memo, AT&T reports the iPhone 3GS launch day on June 6 was the best-ever sales day for AT&T retail stores, according to MacDaily News. June 6 was also the second largest traffic day for AT&T stores, and the most upgrade eligibility checks in a single day were performed during the iPhone 3GS launch day. The 3GS debut was so huge, for AT&T retail stores anyway, that sales for the device surpassed launch day sales for the iPhone 3G by noon Central Time.

After the iPhone 3GS initial launch weekend, Apple also reported a successful launch of its latest smart phone reporting that it had sold more than one million iPhone 3GS devices at Apple retail locations. That’s the same number Apple used to describe the iPhone 3G launch weekend last year.

What’s surprising, however, is a growing consensus that the iPhone 3GS debut may have been far bigger than the launch of the iPhone 3G. Last summer, the iPhone 3G debut was lauded as the most successful launch of any tech product in history. For days after its initial availability, fans were lining up around the block at Apple Stores across the United States and the world to get their hands on the iPhone 3G. Device shortages were a regular occurrence, and customers in less populated areas were left waiting for months to get their own wonder gadget from Apple.

This year, the lines were not as long for the iPhone 3GS, and the frenzy that accompanied the 2008 iPhone 3G launch was not present. This could have been for a number of reasons including better inventory supplies on Apple’s part, and a public less willing to line up for days on end just to get their hands on a smartphone. But if suspicison are correct, then relative customer apathy was not an issue for Apple this year, and the recession may not have made much of an impact on iPhone 3GS sales either.

Other signs of the iPhone 3GS’ popularity are also starting to crop up. Earlier this month, Apple resurrected its iPhone availability tool to help you find the Apple Store with the best 3GS supplies near you. Customers in the United Kingdom and Canada may find it harder to get the iPhone 3GS in the coming weeks. The World of Apple is reporting that two carriers–O2 in Britain and Fido in Canada–have run out of their iPhone inventories; however, Apple Stores in both countries are still stocked up with inventory.

So the iPhone 3GS is shaping up to be the hottest iPhone ever, but we may not know how hot until Apple releases its quarterly earnings report later this month.

According to an AT&T company memo, the launch of the iPhone 3GS wasn’t just a banner sales day for the carrier this year but broke records for any single day of retail sales in the company’s history — including for already stellar iPhone sales.

The leaked e-mail characterizes “iLaunch Day 2009,” its nickname for the June 19th iPhone 3GS release date, as the “best-ever sales day” and just second in terms of actual floor traffic. Many of its other sales-related records were also shattered at the same time, ranging from the number of upgrade eligibility checks made in a day to the sheer volume of orders taken through AT&T’s website.

The notice obtained by multiple anonymous MacDailyNews readers also illustrates just how quickly the seemingly more modest iPhone update outpaced the already large-scale iPhone 3G launch last year. 3GS sales not only exceeded the first days after both Thanksgiving and Christmas, either of which have always been popular shopping days, but were so brisk as to overtake the iPhone 3G’s launch day count by just noon in Texas time.

Interest in the stores was so high that AT&T stores were considered at “peak” activity for 11 hours, or nearly half a day, despite the company accepting pre-orders online for day in advance.

As could be expected, the cellular company doesn’t provide a concrete sales number in the memo and, when contacted by AppleInsider for confirmation, only repeats its mantra that it accepted hundreds of thousands of pre-orders in the run-up to the iPhone 3GS going on sale less than two weeks ago.

“We have no further comment beyond that,” a company spokesman says.

Apple has been slightly more open on the subject and previously said it sold one million iPhone 3GS devices over the course of its launch weekend through all of its outlets. Although the same number as for last year, the California-based electronics firm reached this figure in 2009 with only eight countries onboard for the first day, or less than half the 21 that were ready on July 11th, 2008. The similar numbers, combined with a smaller-scale launch, indirectly confirm that US launch sales, including through AT&T, have spiked that much higher in 2009.

April 23rd 2009 by Mark Walsh
The iPhone once again helped power AT&T’s earnings. While the telecom giant’s first-quarter net income fell 9%, the company managed to beat analysts’ expectations on the strength of its wireless business and the Apple device in particular. AT&T activated 1.6 million new iPhone accounts during the quarter and added 1.2 net new wireless subscribers overall, with 75% signing long-term contracts. The influx of new customers amid the economic downturn helped AT&T report net income of $3.2 billion, or 53 cents a share — down from $3.52 billion, or 57 cents a share, a year ago. Revenue fell slightly to $30.6 billion.

The company’s wireless division had a 13% profit increase and a 9% gain in revenue. The key for AT&T with the iPhone, and other smartphone, is boosting revenue from services other than phone calls like messaging and Web access. To that end, AT&T increased mobile data revenue in the quarter 38.6% to $3.2 billion. And nearly one-third of its 61 million contract customers now own “integrated” devices.

The continued slide in AT&T’s wireline business, with revenue dropping 5.4%, was offset by gains in its high-speed Internet and television services. It added 359,000 Internet connections — up from the fourth quarter — and 284,000 subscribers to its U-Verse TV offering.