iPhone Update: Strong Sales Mix With Nagging Problems

AT&T reported yesterday that the first 12 days of iPhone 3G sales were almost double that of the original iPhone last year. The company also said that it has increased its subscriber base by 1.3 million. This is all good news for AT&T and Apple (who is also reporting near tripling of iPhone sales compared to 2007), but what about the rest of us?

The iPhone 3G is almost sold out across the country, and there is no word on when stocks will be replenished. The Chicago Sun-Times is reporting that availability for the device is spotty in the metro-Chicago area, and my own check confirms this with the East Coast showing better availability than in other regions of the country. Of course, you can also go to eBay to try and get your hands on the newest Jesus phone, but some iPhones are going for as much as $1100 over there.

But are customers paying for the quality they've come to expect from Apple?

Dropped Calls, Spotty GPS, and Bluetooth Blues

Not really. There are still complaints that the iPhone's 3G service is plagued with service problems in major metropolitan areas even in locations that have a strong signal. Dropped calls are not uncommmon, and AT&T is reportedly advising customers to solve the problem by turning off their 3G access, thereby negating the reason for having an iPhone 3G in the first place. There are also reports that the iPhone GPS service does not always work and customers have to go through a cryptic method of turning on and off their 3G, Bluetooth and Wi-Fi functions to get it to work. Customers using the iPhone 3G's Bluetooth function through their car systems are complaining of an audio echo .

On top of all this, MobileMe is plagued with so many problems that even Apple-lover Walt Mossberg says in today's Wall Street Journal that the service is too flawed for him to recommend it.

So did Apple go to market too soon with the iPhone 3G? Seems like it. Let's just hope these flaws get fixed quickly. Until then you may want to hold off on getting the iPhone, even if it is available near you.

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