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AT&T Battles iPhone 4 Shortages


By Allen Tsai | Tue Jun 22, 2010 5:29 pm

AT&T, which last week stopped taking preorders for Apple's iPhone 4 due to inventory issues, said that it won't have any devices available for purchase at its stores until five days after they go on sale Thursday.

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Apple iPhone 4

Apple iPhone 4

The Dallas, Texas-based company noted that customers who preordered the iPhone 4 should receive home and business deliveries beginning this week. But new buyers will have to wait until July 14 for backorders to clear up.

"We want to give priority to customers that preordered," said Mark Siegel, an AT&T spokesman.

AT&T's inventory troubles follow a crush of advance orders last week that crashed AT&T and Apple websites and forced the carrier to stop taking sales after just one day. The preorders were the most ever taken by the carrier in a single day and 10 times higher than for the iPhone 3G last year.

While it is unclear why AT&T wouldn't have the new iPhone available in stores, Apple said its retailers would still sell the device on Thursday, as would Wal-Mart, Best Buy and RadioShack, according to spokesmen at those companies. But they added that units are likely to be in short supply.

The issue highlights how hard it has become for phone makers to predict demand for new products. They depend on a number of parts from separate suppliers and often have difficulties beefing up production when a shortage does happen.

Rival Verizon's current flagship phone, the Droid Incredible, is on prolonged backorder until late July after launching a month earlier. On Wednesday, the company will unveil its new Droid X, made by Motorola.

"We're comfortable that we'll be able to meet the demand," said Brenda Raney, a Verizon spokeswoman, citing it works closely with Motorola to ensure they have appropriate supplies.


Posted In: Apple (1088) | AT&T (508) | iPhone (635)


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