Monday, July 7, 2008 -- 4:54 p.m. -- at my desk

Hi, callers. You may have read today about how O2 started taking pre-orders for the iPhone 3G online, only to have to stop after running completely out and having their servers overloaded.

If this is any indication of what getting an iPhone 3G will be like on Friday, it's going to be a madhouse from coast to coast and around the world.

Here, in its entirety, is the O2 press release. It's always fascinating to read this side, I think.

Many, many thanks to caller Kim for this image -- she got this screen today when trying to preorder -- and for the press release information. She's a great representative from the U.K.!

Thanks for calling.

07/07/2008 08:49
O2 Sees Unprecedented Demand for iPhone 3G
iPhone 3G goes on sale in stores at 8.02am on 11 July

O2 today announced that Apple’s highly anticipated iPhone 3G will go on general sale from 8.02am on Friday 11 July in O2, Apple and Carphone Warehouse retail stores*. To ensure fairness, O2 will sell the device on a strictly first come, first served basis to both new and upgrading customers in all retail outlets.

Demand for the revolutionary device is already at unprecedented levels, far in excess of the original iPhone. “We’ve never seen any mobile device create the excitement and demand of the iPhone 3G,” said Ronan Dunne, CEO of O2 in the UK. “We want to ensure that everyone who wants an iPhone 3G can get one so we’ll be working with Apple to continually replenish our supplies throughout the summer.”

This morning customers who had pre-registered their interest in iPhone 3G were given the opportunity to purchase via O2’s online shop (http://shop.o2.co.uk) a limited stock of devices which had been set aside. The response was so great that the online store completely sold out of iPhone 3Gs within just a few hours. Though O2 had invested several million pounds to increase the order capacity of the site (with order processing capacity increased by over 250 times its normal rate), at times the site still couldn’t process the sheer weight of demand.

Details of when new supplies of iPhone 3Gs will be available via the O2 online shop will be updated regularly via the website.

Business customers can from today also start placing orders for iPhone 3G through O2 business channels. Delivery timings will be communicated when an order is placed.

iPhone 3G combines all the revolutionary features of iPhone with 3G networking that is significantly faster than the first generation iPhone. The device has built-in GPS for expanded location based mobile services, iPhone 2.0 software (which includes support for Microsoft Exchange ActiveSync) and runs the hundreds of third party applications already built with the recently released iPhone SDK. These can be accessed via iTunes.

The 8GB iPhone 3G will be available for free to customers opting for the £45 or £75 tariffs and £99 on the £30 and £35 per month tariffs. The 16GB model will cost £159 on the £30 and £35 tariffs, £59 on the £45 tariff and it will be free on the £75 tariff. All customers will continue to receive unlimited UK data browsing over O2’s mobile network and unlimited access to over 9,000 Wi-Fi hotspots through both The Cloud and BT Openzone***.

Existing iPhone customers can upgrade early to the iPhone 3G through O2 channels by re-signing a new 18 month contract, taking advantage of the same great offer as new customers. They will then be able to give their existing 2G iPhone to a friend, family member or colleague who can transfer onto an iPhone tariff if they are an existing O2 Pay Monthly or business customer, stick in their existing O2 SIM and buy the appropriate Bolt Ons for unlimited data, or buy an iPhone Pay & Go SIM card from 11 July offering unlimited data and unlimited Wi-Fi access to The Cloud and BT Openzone hotspots for £10 per month. Full information is available on o2.co.uk/iPhone.

The iPhone 3G will launch on O2 Pay and Go (Prepay) in time for the Christmas shopping period, with pricing details to be confirmed closer to launch.

-ends-
Note to editors:

*The iPhone 3G will go on sale at 8.02am in all Apple stores and at selected O2 and Carphone Warehouse stores on the high street. All remaining stores will open at standard trading times. Check with your local store or online for opening times.

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Too bad we don't have a O2 equivalent in the States!

SCOTT'S REPLY: ;-)

Do you really think we'll have that same kind of response here in the states? My thinking all along has been that this roll out is targeted more for the European community that is well ahead of us and didn't feel like "stepping backward" for a phone with slower connection speeds. My guess is pent up demand is more off the hook there than it is here but who knows!

SCOTT'S REPLY: I think overall that Europe is more excited about it because of the availability of 3G and the step backward that Edge was ... but here in the states -- where there is 3G coverage, I think plenty of folks will bite -- especially with the subsidized price.

This great news might merit a follow up order (ranked in order of country) of what the anticipated volume of sales might be per country. (per your opinion or anything Apple has commented on for sales volume). It would be nice to see the breakout and ranking of the top 20 foreign counties, etc, or a checklist to see how they anticipate getting to the 25 million in sales etc. (For example, UK 4 million, France 2 million, Denmark etc, etc)

SCOTT'S REPLY: Love the idea, but Apple's info regarding specific countries is pretty much non-existent unless there's a big news story to warrant it. In this case, getting it narrowed down like that outside of me just doing something indicating what I think is kind of unlikely. Welcome to the world of Apple, Boya.

The one thing that's still unclear to me is whether or not existing iPhone customers can upgrade in store. The original information was that it could be done online only, however that didn't work out too well for most of us. I've been reading on many forums the mixed information that people are getting from O2 customer services and O2 stores. Customer services say existing iPhone customers can go to a store on Friday and upgrade, but many O2 stores are saying no. I guess it's a "suck it and see" situation.

SCOTT'S REPLY: I've looked around for this answer and can't seem to find it. If upgrades can't be done in store, that means they'll have to fix the problems plaguing the online component.

The press release says existing iPhone customers can upgrade through "O2 Channels". Does that mean stores ,online or mugging someone leaving a store with an iPhone? I wish they'd clarify it to make sure people going in store aren't left disappointed on Friday when some rule following, pimply faced, O2 teenage sales person turns them away.

Anyway, I've slept on it and decided not to bother with it all for the moment. I'll take my new software release and be happy with that for a while.

I am really frustrated by O2 here. They sent a text message to iPhone customers many weeks ago asking us to log on to the O2 site, and register our interest (I did it), then yesterday morning, I got a text saying come to the site and place your advance order.... I tried from approx 8:30 until about 13:00 when the site eventully said we are out of stock...come back on the 10th for more info.
How was it that they were surprised by the demand??? We had all pre-registered so they knew how many people were likely to try to order ... I received 11 seperate "upgrade codes" via SMS (part of the online ordering process) but never actually managed to place an order despite entering my credit card details etc approx 30 times!!!
I do not beleive they have run out of stock, but just cant sort out their online ordering system!!

SCOTT'S REPLY: Pete, you have every right to be frustrated. I don't live in the UK and I'm frustrated.

Looks like in-store upgrades are possible for existing iPhone owners. O2 have slightly changed the wording on their website. It now says:

"This special early upgrade offer is only available until 11th October 2008."

It use to say it was online only and available until 11th October (or words to that effect). They seem to have removed the "on-line only" criteria which is great.

SCOTT'S REPLY: That is great. Today, an O2 executive said that large iPhone 3G shortages that could last weeks loom.

3G is not a new concept in Europe like it is here. The first 3G store was being set up in London when I left in 1999! I think the big deal with the phone this time around in Europe is the price, people aren't used to paying for phones there like they are here. I'm still shocked at how cheap it is in the UK to be honest.

SCOTT'S REPLY: I agree, Jennifer ... the cheap factor is a big deal, but when the iPhone came out last year without 3G -- which, as you say, is something that Europe is used to -- I think it really hit a sour note with consumers who expected more. This time around, the iPhone will be more Europe's style and I think it's going to be the chic thing to be seen with.

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