Unfortunately, there was nothing as exciting as what happened during my last iPhone purchase. I'm in New Orleans, and I figured people here wouldn't care as much as residents of other cities did. I was wrong. I showed up around 7:20, forty minutes before the store was supposed to open, and about forty people were already in line.The mood was a lot calmer than I remember it being in DC. This may have been because there were no sketchy dealings with elected officials' goons skipping the line and exiting with several iPhones. The AT&T store staff was friendly and helpful; they came around several times with bottled water (it's pretty hot in New Orleans in July, even early in the morning). They were also very good about warning people far back in the line that they were probably out of luck. Early on, they went down the line asking each customer what he or she intended to buy and counted them up. They came out a little later and stopped by me and said we might get phones, but everyone beyond us probably would have to order them. As it turned out, they were right: I got the last iPhone they had.
I can't say anything bad about the AT&T store. I can say plenty about AT&T corporate and Apple. Just like last year, they were totally unprepared for the launch. Gizmodo had spoken to a few sources about how many iPhones the AT&T stores would be getting:

AT&T wouldn't comment on how many per store, but Gary thinks north of 50-75, even in the boondocks, and another source tells us 100-250. Though AT&T wouldn't comment on the spread, logically, stores in more populated areas are going to get more.

The AT&T store I went to, in a commercial area of New Orleans, got 40. When I spoke to one of the store's reps, she said she was surprised they got so few this year because the line had been at least twice as long last year, and only about half of this year's line got phones. Whether this was poor planning or Apple trying to claim that it sold out across stores nationwide to further the buzz, I don't know. This store is getting more stock to sell sometime tomorrow, but per corporate rules, they can't create a waiting list from the people in line today who didn't get phones. Those people have to "direct order" them (pay for them now and have them arrive in 7-10 days) or go get in line again tomorrow.
Like many others, I also had problems activating my phone. I keep getting the same "An unknown error occurred" in iTunes each time I plug the iPhone in. I swapped the provided sim card out for the one I was using with my old iPhone, but still nothing. Then, as I was writing this, I received a text message and suddenly was able to make calls. I still get error messages when I sync with iTunes, but at least I'll be able to make calls while Apple and AT&T figure out who's to blame.
Overall, the line wasn't too bad, the AT&T staff was helpful, and most of the customers—save one who apparently didn't realize that the discounted prices were for new contracts or iPhone customers, not existing customers—were normal. It's a little ironic that New Orleans, the most bizarre place I've ever lived, was lacking any iPhone high jinks, drama, or scandal.

The iPhone itself may be cheaper, but the required flat-rate data plan now costs $30 per month, a $10 increase. Over the mandatory two-year contract, that works out to an extra $240. AT&T also now charges $5 per month for 200 text messages, which used to be free. That adds up to another $120.

Before you apply your generous $200 discount, you've already agreed to fork over $360. Two years from now, your new iPhone 3G will have cost $160 more than a current-model iPhone.

We're usually not ones for math, but our tech-drunk brethren over at Gizmodo confirmed the numbers:

Gizmodo believes that the iPhone's nifty new features justify the price bump. They may be right, but in unveiling the new iPhone, Apple zen master Steve Jobs argued in his keynote address that the reduced price was aimed at buyers who couldn't previously afford iPhones:

Everybody wants an iPhone, but we need to make it more affordable. And we know this because we go out and talk to people who didn't buy iPhones, and the number one reason, by far—they all want one—is they just can't afford it. Some of them can't afford it. So we need to make the iPhone more affordable.

The new iPhone is not more affordable. Anyone deceived by Apple's lower price point is going to get a nasty wake-up call when they read their first bill.

(Photo: respres)

We appreciated two spots for Doritos and Fed Ex that featured oversized animals overcoming expectations. Doritos' slapstick ad played off the old truth that mice love cheese with a scene that we would love to see played out at Disney.
Fed Ex did a commendable job using pigeons, but even though it was clever, it only reminded us of their own bird brained failures.
Coke's spot with former Senate Majority Leader Bill Frist and James Carville was the most honest ad of the night thanks to its crisp, refreshing message: members of the government are shameless whores who gladly sell out to the highest bidder. It's true. Everyone likes to rail against the incestuous ethics-free cesspool that is Washington politics, and here it is, proudly on display for the Super Bowl. This is the saddest political ad since Bob Dole endorsed Viagra.
Most disappointing spot of the night goes to the Office of National Drug Control Policy. These are the people who gave us our brain on drugs. Our tax dollars should churn out high-powered visuals, not low-budget documentary-knock-offs. We could barely hear the skeezy drug dealer mutter the key line: kids steal drugs from their parents.Do people ever get ideas from ONDCP commercials? We didn't realize kids could get high and save money just by raiding their parents' medicine cabinet. Thanks for the tip, federal government!

What did you think of the ads? Tell us in the comments.

Watch All the Super Bowl Spots [Ad Age]

The Super Bowl is the advertiser's carpet-bombing run. 140 million Americans—almost half the country—tune into the game at some point. Advertisers expect a massive crowd, and we don't disappoint. Viewership has remained stable since the Reagan era:But the cost of the average 30-second slot has skyrocketed to over $2.7 million, almost $90,000 per second.Last year advertisers paid $2.5 million per slot, and we wouldn't be surprised to see prices rise to over $3 million next year, vastly outpacing inflation. Advertisers willingly drain their bank accounts because they are able to squeeze value from their investment, which is why Fox sold all but ten ad slots by October.

Advertisers are increasingly using their Super Bowl advertisements to drive integrated ad campaigns that send traffic to their websites or other venues. The goal isn't to micro-target existing demographics, but to use kitschy gimmicks focusing on brands or products to reel in a broader swath of people.

The prize is what Pete Blackshaw of Nielsen calls "monday morning chatterbacking," a phrase that makes us want to slit our wrists with a Hello Kitty butter knife. Still, traffic to advertiser's websites does rise by 50% the day after the game. This year, Fox is trying to drum up added synergy with fellow News Corp property MySpace. Advertisers who buy Super Bowl slots have the option of buying complementing ads—quizzes, trivia, junk like that—on MySpace, which Fox will promote during the game.

Super Bowl ads try to pass themselves off as entertainment. YouTube will highlight cutesy ads, and people will treat them as fresh content. Over a third of us watch the game just for the ads, and may even keep an eye open for one or two in particular. That's fine. Just remember that you are watching advertising. The goal is not to entertain, but to get you to spend.

Super Bowl 2008 [Ad Age]
(Photo: monstershaq2000)

The various theories get sort of complicated (taking into account European sales, etc.) but it boils down to this: Either there are a million unlocked iPhones out there, or the demand is not as high as Apple's numbers suggest and there are lots and lots of unsold phones sitting around on AT&T shelves.

Report: iPhones piling up at AT&T stores [CNET]
(Photo:epicharmus)

Of 52 items the Globe tracked over the five-week holiday shopping season, only five items were cheapest on Black Friday. The vast majority of the products either stayed the same price or fluctuated above and below the Black Friday price from week to week. Seven items were actually cheaper the day before Christmas than on Black Friday.

"If you wait it out, you'll often do better," said Joseph Feldman of the New York retail consultancy Telsey Advisory Group.

The Globe tracked prices of items ranging from digital cameras to laptops by checking advertising circulars from stores such as Best Buy, Sears, and Circuit City each Sunday, starting the weekend before Black Friday. To be included in the survey, an item had to appear in the circulars for three of the five weekends before Christmas. Five of the items were cheapest on Black Friday, including a JVC 30GB hard drive camcorder at Best Buy that rose $70 by Dec. 2 to $399, before climbing another $100 the following Sunday. The last time the item was advertised was on Dec. 16 at $399.

The prices for 20 items stayed the same, including a Sony PlayStation 3 from Circuit City that held at $399. On 20 items, the price changed from week to week - meaning some weeks buyers paid more than the Black Friday price and some weeks they paid less.

And late sleepers and the last-minute procrastinators could beat the Black Friday prices on seven items. For example, Circuit City featured a $119.99 AIPTEK camcorder that includes an MP3 player, voice recorder, and webcam on Black Friday. By Dec. 16, it had dropped to $89.99 - a 25 percent savings. And Best Buy offered a Nikon Coolpix navy blue digital camera for $199.99 on Black Friday. It jumped to $229.99 and then $279.99 in the following weeks, only to fall back to $199.99 by Dec. 16. It wasn't advertised on Dec. 23, the Sunday before Christmas.

For shopping early birds... [Boston Globe]
(Photo: The Searcher)

We think it masks some of the price advantage we have versus our competition and, frankly, the consumer should decide what they want," Fils-Aime said.

Asked if Nintendo had threatened such retailers with fewer Wii shipments, Fils-Aime said only that the company carried a lot of weight as maker of one of the most highly sought items this holiday season.

"We don't have to remind retailers of the strength we have right now. We are simply making an observation and that reinforces our point quite nicely with retailers," Fils-Aime said.

"Nintendo says Wii shortages hurt planning" [Reuters]

RELATED
"Reggie (Softly) Threatens Bundling Wii Retailers" [Kotaku]

I started this side business with the release of the PS3. Months prior to launched to fund my purchase of one by buying five and reselling on Craiglist. I made the purchase on a credit card, in full, nearly 4 months before launch at a smaller electronics store in the Chicago suburbs...

I picked them up day of and listed them. By the end of the auctions I had made nearly 1000 dollar in excess of my own PS3 purchase. I ended up listing my own machine as well, as the demand was insane. All told, I cleared nearly 2000 dollars in profit. I still haven't bought a PS3 actually.

I received death threats, e-mails from people saying I was "a monster" and someone claiming I was "selling her child's Christmas away!" Someone even went so far as to contact Ebay and claim I was selling porn. People were livid at the profit being made.

The Iphone launch was even more insane. I saw people listing them on Craigslist just hours after launch for 800/900 bucks. So I went to the apple store in downtown chicago and bought 2, my girlfriend bought one as well. There was no line, it was the 30th of june, less than 24 hours after launch. I sold all three on Craigslist that night for 200 bucks over cost.

The Wiis have been a steady stream of income. I'm a casual video game player but I got to know the guy who runs my local Gamestop. He told me when they get their deliveries and said Wii's were first come, first serve. Since the summer I've bought 10 of them and sold them for an average of 150 bucks over cost.

The Wiis are the where I feel some degree of guilt. After a year they're still ridiculously rare. I'd really advise people to get to know their game-sellers. Think of what the average gamestore employee gets treated like by hyper kids, angry parents and surly trade-in people. Treat them as people, give them some empathy and chat them up a bit and they'll happily get you in the know. They're not breaking any laws or company policy, just helping out a 'valued customer'.

The managers are the best to get to know. Their turnover is usually quote low. They usually work on new release days, especially for big games. Coming in when the store is slow (before school lets out) is a good time.

Avoid big box stores. Total waste of time. Their turnover rate of employees are ridiculous. No chance to build up a relationship. These stores also keep a very watchful eye on employees, so a lot of them might be nervous about anything that might get them in trouble. Even the "appearance of impropriety" can be enough.

Should you buy from me or other resellers? First and foremost, if you're buying something for more than retail, you're paying what I like to call "FIRSTIES!" tax. You want to be the first guy at the office to have an Iphone? Or have the first PS3 video on youtube? What is it worth to you? I sold two iphones to one guy who simply wanted to show it off to his fellow lawyers at court. One of the PS3 fans who bought from me wrote me a page long message of thanks. He'd just paid nearly a grand for a 600 game console and he could not stop thanking me.

I've had people in my life question the morality of what I've done. One friend stopped talking to me altogether, saying that the money I'd made selling Wiis was "like taking candy from kids". To me, that's nonsense.

I've never bribed anyone, lied to anybody or stalked any stores. I'd never camp out, never grabbed something from a kid or fought shoppers. Actually, I hate shopping, I do most of my buying online and deal hunt, comparison shop and consult sites like consumerist.

Look, if you really want an item, wait for it to be plentiful. The rush on stores, the camping the fighting? That's a mug's game. The people who I've sold things to...frankly...I don't think they're very bright. They've certainly helped me (paid off most of my car, rent for a couple months, some nice dinners with friends, plenty of books) but I think they were ultimately being led on by media hype and greed frenzy. Paying twice the price for something you can usually wait a while and get on sale? Not worth it.

-Garrett (a reseller)

(Photo:renaissancechambara)

"Retailers are having special Cyber Monday sales, and the way I see it, if retailers are attaching a sale and calling it Cyber Monday, it's true," says Scott Krugman, spokesman for the National Retail Federation.

"Black Friday is a great day for creating energy, buzz and excitement about the holiday season," Krugman said.

The sales do exist, however, and can be perused at the National Retail Federation's website, "Cybermonday.com."

The actual busiest shopping day is the Saturday before Christmas, as any former or current retail worker can attest. Online shopping tends to peak on the last day that items can be shipped in time for Christmas, says ABC.

Cyber Monday: Myth and Reality [ABC News]

"It's kind of encouraging that Black Friday didn't suck all the wind out of shoppers' sails," said Bill Martin, co-founder of ShopperTrak RCT Corp., which monitors 45,000 retail outlets. The weekend turnout, he added, "bodes well for the holiday season."

ShopperTrak found in-store sales Saturday were up 5.4% over last year and the Friday-Saturday total posted a 7.2% increase over 2006.

Online traffic rose 10% from a year earlier, according to data released Sunday from research firm Nielsen Online.

As in past years, "doorbuster" deals coaxed many to open their wallets. In addition to pushing flat-screen TVs, last year's must-have item, retailers have used less expensive electronics to bait consumers who vow to spend less this year, Krugman said. Hot sellers included digital photo frames and cameras. Deals on laptops were also common.

Many shoppers who rushed to the stores early found only a handful of some advertised bargains in stock, said Britt Beemer, chairman of America's Research Group. "There were a lot of unhappy customers," he said, adding that some stores said they didn't get their shipments.

We then bought a KitKat bar because there were tons of registers open and basically no line. Delicious.

Store traffic doesn't let up [LA Times]
(Photo:Tengaport)

Here's the scoop:

This is all due to the temporary injunction issued by a German court earlier this week. The judge said that T-Mobile had until today to change its policies with the iPhone. Even though the company said it would oppose the injunction, it apparently had no other choice than to oblige until the case is reviewed once again in a couple of weeks. Vodafone, which brought the case against T-Mobile, said that it would not pursue the iPhone throughout Europe—this case was special because Vodafone believed that it violated German law.

So what can you do now? Well, if you're in Germany and you want an iPhone, you can buy one from T-Mobile for €999. If you already bought an iPhone, the company says that you can request an unlock code (which will probably cost you the difference between €399 and €999). T-Mobile has said that it will continue to sell these contract-free, lock-free iPhones "until the legal situation is solved," so this may be temporary.

T-Mobile forced to sell unlocked iPhones in Germany [Ars Technica]
(Photo:medalian1)

After weeks of speculation, Wal-Mart unveiled its Black Friday ad early this morning, and while it isn't short on great buys—including, for example, a sub-$800 42-inch 1080p LCD and a sub-$1,400 50-inch 720p plasma—it seemed to lack the punch of last year's promotion, which triggered severe price drops on a highly rated Panasonic 42-inch plasma HDTV.

This year, TV promotions are centered largely on models from Polaroid, a secondary brand whose models haven't done particularly well in CR's HDTV Ratings. For example, as part of a Friday-only, 5:00 a.m. to 11:00 a.m. doorbuster sale, Wal-Mart is offering a 42-inch 1080p Polaroid LCD TV for $798, while a 32-inch 720p Polaroid LCD TV is priced at $448. Other TV deals good only during that time include a $448 26-inch Polaroid LCD TV/DVD combo, and a $198 Emerson LCD TV.

For all you Black Friday obsessed folk, Walmart also plans on unveiling some additional deals on Thanksgiving Day via walmart.com

We plan on keeping up our usual Black Friday tradition of sitting at home, sipping eggnog and watching Planes, Trains and Automobiles. Those are not pillows.

Wal-Mart Black Friday Ads Lack Last Year's Fireworks [Consumer Reports]
(Photo:kandh07)

Lululemon claims that the seaweed clothing is "made with vitasea technology consisting of seaweed which releases marine amino acids minerals and vitamins into the skin upon contact with moisture," and that the "fabric provides anti-inflammatory, anti-bacterial, stress reducing, hydrating and detoxifying features."

After intially telling the NYT they couldn't dispute the paper's findings, (If you actually put it on and wear it, it is different from cotton," Dennis "Chip" Wilson, Lululemon's founder, chief product designer and board chairman told the NYT. "That's my only test of it."), Lululemon now claims that they have tests that prove the garments do contain seaweed.

The yoga wear retailer, a market darling whose shares have roller-coastered since the seaweed story surfaced mid-week, said late Thursday that tests done overnight in Hong Kong show its product line to be "consistent with the garment care and content labels."

Bob Meers, chief executive of the Vancouver-based company, said the new tests were commissioned in light of a newspaper report saying Lululemon's claims about having seaweed in its VitaSea line of clothing might not be true.

Meers said in an interview the company took batches of VitaSea clothes from stores around the world and sent them to the SGS Group laboratory in Hong Kong, the same Swiss-based company that does quarterly product testing for Lululemon.

After six hours of testing: "They came back and validated it," Meers said of the company's seaweed product claims.

Anyhow, we're sure your magical yoga pants are awesome and everything but you'll have to forgive us for remaining skeptical that seaweed in fabric (if, indeed, it's even in there) will give you vitamins and keep you hydrated.

Lululemon CEO says new seaweed clothing tests should clear company's name [CBC](Thanks, Cowboys Fan!)
(Photo:Carolyn Coles)

The department says that inspectors found hundreds of live cockroaches, mouse droppings, fly infestations, and an improperly functioning sewage system. Delicious!

Department officials tell CBS 2 that both inspections revealed "rodent and fly infestation and conditions conducive to pest infestation, including stagnant water in the basement."

The plumbing was reportedly so out of line that the "sewage disposal system [was] in disrepair or not functioning properly."

On Wednesday night, the store, which has been featured in numerous Hollywood films, apparently kept open its wild zoo of filth for inspectors. The Department says the inspector came upon a live mouse, more than 100 live cockroaches, fruit flies, house flies, and piles of mouse dropping scattered about the restaurant.

Health Dept. Closes Shop Selling $25,000 Sundae [CBS2] (Thanks, Cigar!)
(Photo:scalleja)

Saturday morning (11/10) I witnessed some amazing sleaziness over at the Princeton,NJ Best Buy. I was standing near the back of the store when one of their salespeople came strolling from a back door holding a Nintendo Wii over his head, and started walking the aisles announcing that it was their last unit. I followed, wondering both how quickly would it get snatched up and how quickly could I decide if I wanted to buy it. It took a few minutes for a couple to come rushing up to claim it, exclaiming how happy their kids were going to be. I went back to looking around the store. About 30 minutes later, I heard this announcement on the store's PA: "Attention Best Buy customers! Julie is now walking through the store with our last Nintendo Wii! If you're looking for a Nintendo Wii, please look for Julie!" And there was another salesperson doing the same thing as the first - walking the aisles of the store holding the Wii above her head.

I was now in the store solely to witness more of this sales technique. The second Wii took just over 15 minutes to sell - I overheard two manager-types (one in a suit, the other a yellow shirt) discussing it, the suit asking "Did Julie sell that Wii, yet? How long?" And then "Wait 40 minutes and send out the next one." Too long for me to wait around, so I left (after stopping in at the store's new Apple niche to set the a Macbook's home page to the Best Buy tagged stories on Consumerist).

I suppose there's nothing illegal or unexpected about this, but as some one tentatively in the market for a hard-to-find Wii I'm annoyed enough to swear off Best Buy this holiday season.

(Photo:silver marquis)

The Washington Post has a fantastic article about Ford's belly flop:

Fifty years ago today, Don Mazzella skipped out of school to see the hot new car that everybody was talking about, the hot new car that almost nobody had actually seen.

Ford Motor Co. had proclaimed it "E-Day," and Mazzella and two buddies sneaked out of East Side High School in Newark, N.J., and hiked 13 blocks to Foley Ford so they could cast their gaze upon the much-ballyhooed new car that had been kept secret from the American public until its release that day.

It was called the Edsel.

"The line was around the block," recalls Mazzella, now 66 and an executive in a New Jersey consulting firm. "People were coming from all over to see this car. You couldn't see it from the street. The only way you could see it was to walk into the showroom and look behind a curtain."

Mazzella and his truant friends waited their turn, thrilled to be there. "Back then for teenagers, cars were the be-all and end-all," he explains. They'd read countless articles about the Edsel and seen countless ads that touted it as the car of the future. But they hadn't seen the car. Ford kept it secret, building excitement by coyly withholding it from sight, like a strip-tease dancer.

Finally, Mazzella and his friends reached the showroom. Finally, they were permitted to peek behind the curtain. They saw a cream-colored car with a strange oval grille that looked like a big chrome O.

"We looked at it and said, ' What?' " Mazzella recalls. "It was just a blah car. I remember my friend Joe Grandi, who later became a Newark cop — he had a gruff voice, and he said, ' This is what we waited all this time for?' We all felt betrayed."

The Flop Heard Round the World [Washington Post via boingboing]
(Photo:Edsel.com)

As former Consumerist editor Joel Johnson once said: "Stop buying this crap. Just stop it. You don't need it. Wait a year until the reviews come out and the other suckers too addicted to having the very latest and greatest buy it, put up a review, and have moved on to something else."

So, the next time you feel the need to wait in line to get a pretty new gadget remember that you could have saved $200 bucks by waiting, uh, about 2 months, and 8 days. Give or take.

8GB iPhone Price Cut by $200, 4GB iPhone Gone [Gizmodo]
(Photo:Gizmodo)

Surprisingly, the niche market has yet to develop specific plans for the iPhone. From The Unofficial Apple Weblog:

As far as coverage through companies like specialized electronics or computer insurance providers is concerned, I had a much harder time finding anything substantial. Most of the companies I spoke with didn't have policies in place, and only Safeware confirmed that they were "seriously considering" introducing iPhone coverage.

Damaged or stolen iPhones are terribly expensive to replace; insurance might be worth the extra price.

Insure your iPhone, because AT&T won't [The Unofficial Apple Weblog]
(Photo: globalreset)

From the AP:

Leanne Greer, 36, had gone on "lock down" — no television, radio or Internet — after buying her copy of "Deathly Hallows" at about 7 a.m. on Saturday. She said she finished reading page 306, then discovered the next 33 pages of the book were missing.

"I just kind of freaked out," said Greer, a Purdue University graduate with degrees in elementary education and English. "My husband said, 'Why are you screaming?' He said 'I thought one of the kids was hurt.'"

Luckily for Greer, she had a backup for her store-bought copy; she had ordered another copy online.

"I'm just that psychotic about it," she said.

She tore open the package that arrived in the mail and kept reading.

Some Potter fans find pages missing [AP]
(AP Photo/Ross D. Franklin)

AT&T says they only activated 146,000—and Apple is expected to release their sales numbers today. Could they be as high as 300,000? Did half of their customers buy a phone that they didn't activate? Seems unlikely.

Too bad for Apple... Their shares are down 6%.

From the Chicago Tribune:

CIBC World Markets said that demand for the iPhone has had a "significant decline" in the past 10 days and that Apple and AT&T might try to boost demand by increasing their marketing efforts. Apple introduced the iPhone in the U.S. on June 29.

"We have noticed decent inventories at stores and thin demand at best," CIBC analyst Ittai Kidron wrote in a note. "Among the stores we visited, most visitors were not looking at the device, and only a very small subset bought it."

Shares fall on soft demand for iPhone [Chicago Tribune]
(Photo:hanapbuhay)

Here's what I think happened. I think UPS's network was overwhelmed by Amazon's Potter-volume in some parts of the country and they had no way to deliver all those packages. (The forums for the book at Amazon and Google Blog Search are full of similar complaints from others...warning, spoilers! UPS even offloaded some of the volume to the USPS for "last-mile" delivery.) So, UPS just marked all of those packages they had no intention of delivering as "oops, we missed you, you must have been out".

Let's go back to Amazon's guarantee, which states that the refund "does not apply if delivery is attempted, but no one is available to accept the package". Amazon would be pretty angry with UPS if they cost them a bunch of money due to refunds and, more importantly, the loss of a bunch of customer goodwill...maybe Amazon would switch a larger portion of their formidable package output to another carrier, for instance. So UPS intentionally misclassifying those deliveries covers their ass with Amazon and covers Amazon's ass with regard to the refund.

Harry Potter and the Phantom Delivery [Kottke.org]
(AP Photo/Tina Fineberg)

By this point, more than a few people are asking questions, and after a guy behind me yells out "fix the schools first," the [Mayor's staffer] gives him the finger and sneers, "there's only 15 left."

I have a brief iPhone/government story. I work in downtown DC and went to the AT&T store on 17th and Pennsylvania around 4:45 to get in line. About 35 people were in front of me, everyone was nice, people from AT&T were giving out water and all was well. They and another store I visited during lunch wouldn't or couldn't tell us how many they had, so the line kept growing until it was about 70 or so. Six o'clock finally comes and they let some people in, and it's really slow going—like one person every ten minutes, even though there are a bunch of employees and registers in there. We later found out that AT&T's system crashed.

So we're all waiting outside and some of the people around me notice a double parked car with a driver and a few dudes outside all on Blackberries talking and looking into the store. A little while later, a guy comes out with three bags and gives them to the driver. AT&T was only allowed to sell one iPhone per customer. Then the same guy disappears back into the store, into the back room. The manager comes out to update people and someone asks him what just happened and we find out that the phones are for D.C.'s mayor, Adrian Fenty. The guy comes out again and quickly gets into an SUV parked in front of the store. By this point, more than a few people are asking questions, and after a guy behind me yells out "fix the schools first," the guy gives him the finger and sneers, "there's only 15 left." The manager, who had come out a few times and been giving rough inventory updates, had estimated about 50 were left minutes ago, and he had also said that there were plenty of 8 GB ones left (which everyone behind me seemed to want). Manager comes out again and says there are now only two 8 GB iPhones left, and that a lot of people in the back of the line probably aren't getting an iPhone today. He said that there were four people from the Mayor's office in the store and they each only got one, but that was a pretty big drop in his estimated inventory.

Incidentally, while we were in line, we found out that the Apple stores in Nova and Maryland had plenty of stock and no lines.

Street told the man: "I'm doing my job," the newspaper said.

Someone should have told the mayor that the iPhone will be available online.

Mayor Waits for IPhone, Then Leaves Line [Brietbart]
(Photo: NBC 10)

•iPhone are expensive: Over the span of a two-year contract, an iPhone will cost at least $2,241. Most carriers offer plans that cost half as much.
•The first rule of Apple products is you don't buy first-generation Apple products: The iPhone may be innovative, but it will probably be flawed like most Apple rev a products. Later generation iPhones will fix bugs revealed by the massive consumer test about to kick off this evening.
•iPhones hit bumper-to-bumper traffic on the information superhighway: The Consumerist may take over one minute to load thanks to AT&T's crud-laden EDGE network.
•Do you really need an iPhone? Steve Jobs called iPhone "the best iPod we ever made." Maybe you just need a new iPod.
•Fear commitment : Thanks to a 10% restocking fee, the iPhone costs $50 from the moment you pick it up.
•Really, fear commitment: Though iPhones are not subsidized, AT&T will still apply the standard $175 early termination fee.
•We have something better than an iPhone: It's called a laptop. Most of our day is spent at the computer. We cherish brief respites from the internet.
•If you can't be with the one you love, love the one you're with: Now is the best time to renegotiate your contract with your existing carrier. Tell them you will leave for an iPhone if they don't bend to your demands.

So thanks to these few reminders, you too can be happy with the phone you have. Right?
No?
Yeah, we didn't think so.
iPhones are so hot right now.

(Photo: Dan H)

Donning a white baseball hat and warmup suit — complete with an iPod strapped to his arm — a casual Philadelphia Mayor John Street patiently sat on a lawn chair on a South Philadelphia sidewalk, hoping to get his hands on the new Apple iPhone Friday morning.

Street said he was No. 3 in a line of about six people, but said he was sure things would pick up later in the day.

"I'm out here with the rest of the gang, and we're all waiting for the iPhone," said Street, a self-proclaimed technology advocate. "This is the latest and I'm going to have it."

What's Mayor Street Doing? Waiting In Line For iPhone [NBC 10]
(Photo: NBC 10)

Existing AT&T customers can keep their rate plan and add a $20 a month iPhone data plan. These customers can activate their own phones through iTunes. There are also special plans for new iPhone customers as well as family plans.

It looks like all customers will have to extend their contracts by 2 years in order to activate the iPhone, if the fine print is to be believed. "Minimum new 2-year wireless service plan and activation fee required to activate iPhone features, including iPod. Plans are subject to AT&T credit approval." They may even try to charge existing customers an activation fee, but we sort of doubt that. Let us know.

It looks like those of you who don't have AT&T and were planning on just buying this and using it as an iPod until your contract with another carrier ran out might run into some difficulty. But that wasn't too many of you, right?

All in all, signing a 2 year contract for the privilege of paying full price for a phone is (let us put this gently, it's nothing personal) not recommended by this website.

IPhone Rate Plans [Apple]

• Nanotechnology enables it to reassemble itself when thrown against wall
• Exclusive link to Google Street View so you can watch yourself using your iPhone at all times
• Takes Polaroids
• When moved from hand to ear, makes Lightsaber sound effects
• Prominent Apple logo
• Reproduces through asexual budding
• Has way, way more PRAM than the last thingy
• Comes with an iPhone hat, so people know you own an iPhone during the brief periods you're not using it

The only iPhone we're getting will be made of paper and attached to a string and placed in front of the SoHo Apple store and yanked from around the corner while we cackle and twirl our mustache.

Apple's New iPhone [The Onion]

"Don't go to an Apple store," Jobs told me. "It will be a madhouse there. People will be lined up around the block, sleeping on the sidewalk to get one. Go to an AT&T/Cingular store. Most people don't know that they will be selling them too." Uh, they do now, Steve.

Notes from the D Conference: An iPhone Tip from Steve Jobs and Genetic Info from 23andMe [Huff Po]
(Photo: Gizmodo)

Chicago Sun-Times: " User experience will be compromised with a mere five hours of talk time." "Smudges, scratches and breakage are big issues. Let us hope we don't have to spend more money and carry special cleaning lotion and buff cloth as accessories!"

New York Times: "Even if you are ready to pledge a lifetime commitment to the iPod as your only brand of portable music player or to the iPhone as your only cellphone once it is released, you may find that FairPlay copy protection will, sooner or later, cause you grief. You are always going to have to buy Apple stuff. Forever and ever. Because your iTunes will not play on anyone else's hardware."

Bloomberg: "Few products have been launched with such a blizzard of publicity as Apple Inc.'s iPhone," Matthew Lynn writes for Bloomberg. "To its many fans, Apple is more of a religious cult than a company. An iToaster that downloads music while toasting bread would probably get the same kind of worldwide attention.," Lynn writes.

Ohhh, fight! Fight! Let's all just remember that first generation devices tend to suck, regardless of who makes them. And where can we get an iToaster, anyway?—MEGHANN MARCO

• $640 Phone - $599 plus tax (~8%)
• $60/mo Voice Plan - cheapest plan with unlimited nights and weekends
• $40/mo MEdia Max 3000 Bundle - includes 3000 texts and unlimited MediaNet
• $8/mo Fees

Total ownership cost for the first year: $1936

Awesome! Let's get one! — BEN POPKEN

True cost of the iPhone [CenterNetworks] (Thanks to Jennifer!)

As a employee of a company I cannot mention but that sells the majority of cingular phones that are sold in this country. I can tell this to you in hopes of you passing it on to all my die hard mac loving brothers. The iPhone will be available without a contract, that is if it comes to us via cingular. We will not have a product with at $$$ price tag that people are willing to outright buy on our shelves just sit on those shelves just because of "contracts". I'm not saying it won't be f&#;*ing expensive but if it comes here it will be available. If not publicly at least in practice.

What do we want to wager a contract-free Cingular phone to cost? $1600 $700? A pretty penny, but not having the hassle of dealing with Cingular's crappy network and anti-consumer policies might make up the difference.

Aside: From Cingular's CSR automated talking point system:

Q. Where can I buy the iPhone? Can I pre-order the iPhone? A. The iPhone will be available in Cingular stores, at www.cingular.com, through direct mail and direct phone offers from Cingular, as well as through Apple stores and www.apple.com. We are not taking pre-orders.

Additionally, the Cingular talking point system says the device will be sold to current at customers at the "new" customer pricing rate, but no discounts will be made.

— BEN POPKEN

As Satchel notes, it won't be long before we see this slogan in a all-over print sold next to F'ty Cent [sic] tracksuits on West 26th st.

Not sure where you get these, but check your local futuristic urban fashion shoppe as that looks like some Kid Robot schwag in the background. Or you could make them with your awesome brain and opposable thumb power, sucker. — BEN POPKEN

The New Ethic [Off the Hook via Don't Believe the Hypebeast]

The first may be a RCA 52" Widescreen Projection HDTV for $474.00.

Walmart will only show the full monty online on Thanksgiving Day. The 8 Secret Deals will not appear in circulars.

Yay, more hype beast. Expect to see more of these super secret deals oops onto the internet at the last minutes.

Black Friday isn't even here, we've never been to one or heard of it before this year, and we already hate it. What a pile of tomfoolery and malarkey. Yes, we're still going.— BEN POPKEN

This year, that title will belong to Saturday, December 23rd. This Friday, November 24th, will most likely rank as the sixth busiest shopping day.

Furthermore, so-called "Cyber Monday," may be a media myth. Last year, the Monday after Black Friday only ranked 9th in sales. — BEN POPKEN

Black Friday, Cyber Monday not as busy as most think [Reuters]

Taco Bell will donate the game machine to the Stanton Teen Center of the Boys & Girls Club.

"Interested PlayStation 3 owners should send their name, email and phone number to tacobellnews@tacobell.com. The first person to respond, based on the time the email is received, and then send their PlayStation 3 will be awarded the Taco Bell Bucks. Offer expires December 1, 2006 at 6:00 p.m. PST."

Mmm. Tacos. Could this somehow be the work of Warren Widicus?—MEGHANN MARCO(Thanks, AcilletaM!)

Taco Bell Offers Lifetime Tacos for Playstation 3 [Junk Food Blog]
Press Release Source: Taco Bell Corp.Taco Bell(R) Offers Tacos for Life for PlayStation 3 [Yahoo]

Check out the auction and see for yourself.

Greed and ignorance had buttsex and out popped buyer 912663XXXX. — BEN POPKEN

(Thanks to Ian!)

Smart retailers handed out vouchers for those line. Smart consumers stayed home. — BEN POPKEN

• Wisconsin: Teenager faceplants into flagpole while rushing for consoles (with video).
• Connecticut: Thugs rob people in Playstation 3 waiting line, shoot 1.
• Kentucky: Drive-by BB gun shooting.
• Oregon: Target line-waiters mugged.
• A volunteer for Senator John Edwards tried to have Walmart "help" the volunteer get a PS3. Walmart said in a statement, ""While the rest of America's working families are waiting patiently in line, Senator Edwards wants to cut to the front." This is days after Edwards participated in a conference with Walmart chastising the retailer for its labor policies...

The things we do for your enjoyment. The late hours. The constant 'freshing. The taking of screen caps...Enjoy. —MEGHANN MARCO

Related:
PS3 Sales Erupt In Violence, Political Disgrace
PS3: Faces of Opportunism
Gamestop Oversells PS3 Pre-Orders
CompUSA's Shady PS3 Ad