The launch of Apple Inc’s much-anticipated new iPhone turned into an information-technology meltdown on Friday, as customers were unable to get their phones working.
“It’s such grief and aggravation,” said Frederick Smalls, an insurance broker in Whitman, Massachusetts, after spending two hours on the phone with Apple and AT&T Inc, trying to get his new iPhone to work.
In stores in the US, people waited at counters to get the phones activated, as lines built behind them. Many of the customers had already camped out for several hours in line to become among the first with the new phone, which updates the one launched a year ago by speeding up Internet access and adding a navigation chip.
A spokesman for AT&T, the exclusive carrier for the iPhone in the US, said there was a global problem with Apple’s iTunes servers that prevented the phones from being fully activated in-store, as had been planned.
Instead, employees are telling buyers to go home and perform the last step by connecting their phones to their own computers, spokesman Michael Coe said.
However, the iTunes servers were equally hard to reach from home, leaving the phones unusable except for emergency calls.
The problem extended to owners of the previous iPhone model. A software update released for that phone on Friday morning required the phone to be reactivated through iTunes.
“It’s a mess,” said freelance photographer Giovanni Cipriano, who updated his first-generation iPhone only to find it unusable.
When the first iPhone went on sale a year ago, customers performed the whole activation procedure at home, freeing store employees to focus on sales. But the new model is subsidized by carriers, and Apple and AT&T therefore planned to activate all phones in-store to get customers on a contract.
The new phone went on sale in 21 countries on Friday, creating a global burden on the iTunes servers.
The iPhone has been widely lauded for its ease of use and rich features, but Apple is a newcomer to the cellphone business, and it’s made some missteps. When it launched the first phone in the US a year ago, it initially priced the phones high, at US$499 and US$599, then cut the price by US$200 just 10 weeks later, throwing early buyers for a loop.
Rollouts to other countries were slow, as Apple tried to get carriers on board with its unusual pricing scheme, which included monthly fees to Apple. The business model of the new phone follows industry norms, and the price is lower: US$199 or US$299 in the US.
On Thursday, Apple had problems with the launch of a new data service, MobileMe. The service is designed to synchronize a user’s personal data across devices, including the iPhone, but many users were denied access to their accounts.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to