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G-D Day
by Steve Smith, Tuesday, July 15, 2008, 4:30 PM

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"This time you be the focus group, Dad."

For all the time she spends scarfing my iPhone, you would think that my daughter would be willing to accompany me on my Friday morning "3G Day" stakeout of the local AT&T store. Even dangling the prospect of her getting my first-gen model as a hand-me-down failed.

"I can't type fast enough on it, anyway," she complained. Suddenly the iPhone was deficient. "Ooh, is that Monkey Ball on there?"

"You can play it while on line with me," I said.

"No. I am not standing on a line with geeks. And, why doesn't Apple just send you one, anyway? Those Wall Street Journal and New York Times guys were already reviewing it days ago. Didn't Apple send them theirs?"

With teenagers, the simplest exchange can turn dire and ugly at any second. This conversation was not going in the direction I intended. So in the end, she slept in while Dad hit the pavement assuaging his ego with fantasies that those other, more deserving, columnists also had wiseass teen daughters.

Last year, I had slammed AT&T for shamefully bad in-store handling of the iPhone launch, so I felt obliged to test the state of their game under the new version's pricing and business model. My local store a mile away in Newark, Del., is fairly robust for a tiny strip mall. I sowed the ground earlier in the week with a pre-launch visit to ask about the Friday arrangements, availability, etc. A well-informed salesperson assured me that they would have an ample supply but to anticipate lines at this store. "We had guys in tents last year," he told me. Apparently, AT&T expected many uninformed customers to get in queues, so they planned to educate everyone on line about the two-year required contract and check their eligibility for upgrade pricing. This salesman felt confident that an upgrader like me would get a phone, because some share of the line would disappear quickly.

At 7 a.m., I drove up to find a fairly manageable line of about 20 people ahead of me. By the time the store opened at 8, the line had doubled. To their credit, AT&T staff worked the crowd well. They provided everyone with water bottles, checked existing accounts for eligibility, and had several people explaining plan intricacies very well. I was pleasantly surprised. But they were dead wrong about needing to filter out the unqualified. "Boy, you guys did your research," I heard one screener say with astonishment as she made her way down the line doing pre-sales interviews.

And my daughter was wrong, too. This was not a line of geeks. Perhaps the Jobs apostles were all at the nearby mall and its Apple store. But here, the new AT&T pricing model seemed to be casting a net far outside the usual early-adopter crowds. A number of families were here, calculating how much their multiple lines and high text messaging loads would cost. Ethnically, the diversity was almost picture perfect. Literally every major American ethnic group was represented equally in the line at 7 a.m. A lot of people mentioned being on family plans already that were costing them $150 or more a month, so the iPhone contracts were unremarkable. With the cost of the phone down to $199 (and about half of the people around me said they were buying that 8GB model) the final barrier had been lowered. Ridiculous as it may be to extrapolate from a single waiting line in a tiny Mid-Atlantic state, it looked to me as if everyone wants a piece of the cool now.

The AT&T staffers kept the line hydrated and informed, announcing when the 16GB black models were dwindling and then the white models. I was actually in the store to hear the staff banter over announcing that the entire inventory was depleted. In my store at least, the manager opted not to tell the line outside that now they really were waiting to pre-order a phone. I thought that move was unfair and exploitive.

Actually, by 10 a.m., it hardly mattered whether people had a phone in hand or not. It wasn't going to work. "3G Day" quickly devolved into G-D----it Day," as millions of newly minted iPhone owners came home with an iBrick. The well-known server outage and iTunes snafu at Apple started once I got into the AT&T store and had my helpful salesperson signing me up. After ten or more minutes trying to activate the phone, he sent me home to finish it with my own iTunes. In the interim, however, the sign-up process had discontinued service to my existing iPhone. As many others have recounted, I encountered timeout errors as soon as I tried synching. Again, to my AT&T store's credit, they responded to my call by suggesting I come back in to see if they could complete activation for me. By the time I got there, one of the managers had received a message from headquarters that no one was getting through to the servers. All customers were being sent home unactivated and with little hope of getting up and running that afternoon.

Even when my iPhone did wake up to the network at around 4:30, it took another couple of hours for iTunes to hit the servers properly and get my data restored to the new phone. Even then, my phone went wacky. The touch screen responded irregularly and buttons stopped functioning. Soon I got a white screen of death that sent me back to the AT&T store for the third time in a day. My earlier attempt at hard rebooting had failed, but my salesman succeeded. By 7:30, the great Apple debacle seemed to be over, at least for me.

But will it be forgotten? From my limited perspective here in Delaware, last year's PR polarity flipped on Friday, with Apple looking aloof and clueless and AT&T seeming affable and consumer-oriented. Having in-store activation should have made the server load predictable. Even on our lines we figured out how many people were being served at a time and when exactly we would make it into the store. Apple knew when various parts of the world were coming online over the course of the launch, the number of outlets involved, etc. This was a problem that anyone with the back of an envelope could have anticipated.

What really astonished me was the company's silence throughout a day when bloggers and customers raked their beloved brand over the coals online. There wasn't even a press statement I could find explaining the problem, let alone apologizing to their brand loyalists for marring the launch day experience they has hyped for so long. Yesterday, the company was quick to announce over 1 million units sold and 10 million downloads already from the App Store. They didn't explain why many of their customers were without phone service for a solid business day.

Worse, Apple gave my family yet another good opportunity to mock "Digital Dad."

"After all that, it doesn't work?" my daughter chortled in that refined teen-girl blend of disbelief and glee. "Do you think that the Wall Street Journal guy had this trouble?" she asked while playing Monkey Ball.

I don't know if Steve Jobs has a teen daughter, but I think the best revenge for last week's brand fart would be to loan him mine for a week.

1 person recommends this article. 

6 comments on "G-D Day"

  1. Pidech Pinich from Residence
    commented on: August 07, 2008 at 8:00 PM
    Thank you. Neme: Pidech Pinich 32/3.Bandoo.Mang.Chiang Rai.57100.Thailand. Email: Pidech_7979@hotmail.com

  2. Jim Dugan from PipPops LLC
    commented on: July 18, 2008 at 8:11 PM
    “No. I am not standing on a line with geeks. And, why doesn’t Apple just send you one, anyway? Those Wall Street Journal and New York Times guys were already reviewing it days ago. Didn’t Apple send them theirs?�

    With teenagers, the simplest exchange can turn dire and ugly at any second. This conversation was not going in the direction I intended. So in the end, she slept in while Dad hit the pavement assuaging his ego with fantasies that those other, more deserving, columnists also had wiseass teen daughters.

    Ahem . . . See Steve run. See Steve's daughter understanding the way it should and will be. See Steve as the Emporer With No Clues. 'Tis very simple. We always like to make it soooo difficult. "And why doesn't Apple just send you one, anyway?" Really, Steve. Why not? Your daughter understands the way things will be and understands the value of her time and, it seems, isn't bothered about the fact that Apple should deliver the phones to her. They'll learn how to treat your daughter's gen differently than they treat you or they won't have her business. Oh, and one last thing Steve. I'm not sure if it's your only daughter, but whether or not or whether it was one of my daughters or someone else's: I think as a Dad there are alot more endearing terms for a beautiful daughter than the one you used. We should focus on listening to our daughters and sons and elders more. We'll do anything to get one of these toys. But those two demographics won't unless the marketing evolves. Thanks for this forum.

  3. Paula Lynn from Who Else Unlimited; hollywood5459@verizon.net
    commented on: July 15, 2008 at 5:11 PM
    OK, Apple and AT&T should have known better. It took within 24 hours to rectify most of those problems. Pain. And if anyone thinks that threshold is intolerable, just you all wait until the pain of paying for the service when they can't pay their credit cards and mortgages/rent, higher taxes on one end or the other, etc. The pain will be for more than 24 hours. Overall, everyone will heal nicely from the iphone pain.

  4. Brian Hayashi from ConnectMe 360
    commented on: July 15, 2008 at 5:11 PM
    Hahahah ...

    Seriously, this is the challenge of the always-on age:

    Level the peaks, fill the valleys.

    In the past retailers and service providers were fairly insulated from sharp peaks in demand. The rare exceptions were things like Black Friday and radio promotional stunts like cheap gas at a specific location.

    Heck, it wasn't until the Gulf War that people realized there was a potential for round-the-clock news.

    Now, we have real time updates and ubiquitous media coverage. Even a little-known blogger can trigger a stampede of traffic with the right message and a receptive audience.

    Given that, marketers need to be careful about minimizing the public outcry of disappointments that accompany too much business, while finding ways to use these tools to generate business during off-peak periods.

    http://connectme.typepad.com

  5. Steve Smith from Media Industry Newsletter
    commented on: July 15, 2008 at 5:03 PM
    I wonder how much Teflon the Apple brand has. I know from reading all the fan boy blogs that the Apple acolytes are already pointing the finger mistakenly at AT&T. I think the press that helps fuel the mania will ask a few more questions about preparedness next time Apple decides to revolutionize the world in a day. I am disappointed in a brand I respect. It think an apology and an explanation to their loyalists was in order, and it raises questions about corporate integrity when they pretend the problem never happened.

  6. Brian Moore from Varolii Communications
    commented on: July 15, 2008 at 4:53 PM
    Great blog...I felt your pain, and I only have teenage boys. In your opinion, is there enough damage to the Apple brand to open the "cool" door for an alternate device, or is the iPod-iTunes-iPhone so dominant that its locked up cool for ever (or at least the next two years?)

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Do you have strong opinions and inside knowledge about the topic of this article -- and do you want to share your insights, observations and points of view regularly with the readers of MediaPost? To be considered as a MediaPost contributing writer, please send pertinent info about your credentials, plus several column ideas and one example of your writing on the topic, to pfine@mediapost.com. Please see our editorial guidelines here first.

STEVE SMITH
  • Contributing writer Steve Smith is a lapsed academic who saw the light, bolted the University and spent the last decade as a digital media critic and consultant. He is chair and programmer of OMMA Mobile and OMMA Behavioral conferences from Mediapost and is the Digital Media Editor at Media Industry Newsletter (MIN) from Access Intelligence. Contact him here.



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