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Fri, Nov 20, 2009 - 04:55 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Leaked AT&T memo: Apple iPhone 3GS generated ‘best ever sales day’
Thursday, July 02, 2009 - 09:39 AM EST

Multiple sources have provided MacDailyNews with an internal AT&T memo that highlights the company's recent milestones and successes:

1. Fact of the Week: On June 25, the day Michael Jackson died, text messages sent on our network spiked at 65,000 messages per second — the largest volume ever recorded — surpassing events like American Idol voting and New Year's Eve, when millions of our customers wish their friends and family a happy new year via text."

2. "iLaunch day 2009 was one for the record books, as AT∓T customers scrambled to get their hands on the fastest, most powerful iPhone yet.

Here's a look at some of the milestones we achieved:

* Best-ever sales day in our retail stores
* Second-largest traffic day in our retail stores
* Most transactions processed via our IT systems in a single day
* Most upgrade eligibility checks in a single day
* Largest order day in att.com history
* Largest features sales day in att.com history

On this year's launch day, iPhone sales exceeded sales recorded on 2008's iPhone launch day, Black Friday 2008 and Dec. 26, 2008 — all heavy-volume sales days. In fact, this year we surpassed 2008's launch day sales at about noon Central time, and sustained our previous peak hour record, also set in 2008, for 11 straight hours.


[Thanks to MacDailyNews Readers who shall remain nameless for the heads up.]

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Jul 02, 09 - 08:46 am Comment from: Tiger Leopard

Sprint Store. BEST DAY EVER.....5 Pre's Sold

Jul 02, 09 - 08:49 am Comment from: silverwarloc

@Tiger Leopard: Best take ever!

Jul 02, 09 - 08:53 am Comment from: lurker

Now they see what the iPhone and iPhone customers can do for them. When are they going to see how Apple just provides great products and services, stop acting like a phone company and start being what they could be? They could be the best network in the world, with fast connections, near ubiquitous service and great customer service. Time to start pulling their part of the load, not just relying on Apples great product to bring in customers despite them.

Jul 02, 09 - 08:59 am Comment from: mike_in_helsinki

Tell all of this to the stupid ass journalists and analysts.

Jul 02, 09 - 09:07 am Comment from: Jersey_Trader

I hope someone translated that to the China telecom hold outs. RIMM and Palm did you hear that. How about them Apples!

Jul 02, 09 - 09:09 am Comment from: edster

Crazy thing is most people didn't even go to the ATT store to get their 3GS. I drover by 2-3 ATT stores to get to the Apple store where I bought mine

Jul 02, 09 - 09:43 am Comment from: HolyMackerel

'65,000 messages per second' at 20¢ each (10¢ per sender and 10¢ per receiver) is $13,000 in texts per second (assuming no one is on a plan which of course is not true). Not a bad income stream.

Jul 02, 09 - 10:24 am Comment from: Wow

How far is this above expectations?

Jul 02, 09 - 10:35 am Comment from: beatboxrob

The bloodbath will be in 3D next year-- go team!
MDN magic word: march- as in the March towards the future..

Jul 02, 09 - 10:41 am Comment from: Wow Wii

It doesn't matter how far above expectations it was - the stock will still tank in response because of the way Wall St ANALysts work.

Jul 02, 09 - 10:44 am Comment from: fustian

This huge sales day was likely because so many people needed to upgrade their accounts to get the new phones at a discounted price.

Whereas before I bought by new iPhones at the Apple store, this time I needed to upgrade, and I preferred to do that at AT&T;where I could be sure I was getting the good price.

In particular, I needed to switch numbers with my wife since it was her account that qualified, and she didn't care as much about getting the new phone.

I suspect that from here on out, there will be more sales at AT&T;than at Apple for the new rollouts.

I have to say it was a relatively pleasant experience too. They had a fan and brought out water (hot summer day). There were about ten people in front of me so I had to wait about 40 mins. Inside they were competent and efficient. I also like that they periodically announced what stock they had left so people didn't need to wait in line unnecessarily.

Jul 02, 09 - 11:31 am Comment from: Michael

Makes you wonder why the sales people in their stores push every phone except the iPhone. Makes you wonder what the hell is going on? And no single AT&T;commercial has ever mentioned the iPhone.


@fustian: "I suspect that from here on out, there will be more sales at AT&T;than at Apple for the new rollouts."

Took me all of two 2 minutes on the Online Apple Store to upgrade from my original iPhone to the 3GS... took all of 5 minutes to activate the iPhone through iTunes when it arrived.

I have a feeling more and more people will be ordering/upgrading online and activating from home. And on a personal note, I would never step into an AT&T;store.

Jul 02, 09 - 11:40 am Comment from: alansky

May AT&T;burn in eternal Hell! They slurp up the gravy, but refuse to spend a dime to improve service and support features on the device that is making them even richer than they already were.

Jul 02, 09 - 12:07 pm Comment from: @ATT

Congratulations. Now, with that influx of capital, do the following:
1. improve your network
2. decrease costs for text messaging
3. thank your customers (esp those who switched from other providers to your network simply for the iPhone and paid for the privilege)
4. give iPhone customers a better rate on tethering than any other users
5. think real hard about 9.95/month for turn - by - turn directions. no one *needs* that feature, and if you really have to charge for it, think about 1.95 range. need convincing? look at the devs in the app store who got started charging .99 for apps.

Let me know if you need any other suggestions. You've made money, but you're on your way to screwing it all up by nickel & diming us.

MDN: million - save us a million bucks and we'll be in your gratitude (we'll stay customers after the exclusivity is over)

Jul 02, 09 - 01:52 pm Comment from: KingMel

@Tiger Leopard
Actually it was *50* Pre's sold, but 45 units were returned from the previous day...

Jul 02, 09 - 04:36 pm Comment from: MZ

@ lurker and @ATT --- couldnt have said it any better guys. They need to finally get thier shit together, because they are gonna risk losing all the people with iphones who switched to at&t;just for the phone, despite knowing how shitty AT&T;was.

The thing I find funny is that the day AT&T;loses its exclusivity contract (which i have a feeling might happen due to the increased tension btw them and Apple), they are gonna be setting some new records as well, but not necessarily good ones lol. They might do alright for the first year or two, until peoples contracts start to expire, then they will sit and watch as iphone customers steadily stream out. I personally cant wait for the iPhone to work on another carrier, so i could switch to someone that actually VALUES my business, not someone trying to take advantage of the fact that they can nickle and dime me (more like dollar and ten me lol) every chance they get cus they have a monopoly on the iphone, and then wont allow me to use the phone to its full potential. I mean i dont really care about MMS, but its really fucked up that AT&T;blocks all iPhone messaging plans from sending MMS, even though we pay as much as the next guy who has the ability on his POS razor for example.

AT&T;really had the chance to revolutionize the cell phone market, and be the best of the best worldwide as lurker was saying above. However, thier management is either really greedy or really stupid, or both, and although thier greed may be lining thier pockets now, it will also be the reason why thier pockets will be empty in the future. To be honest, i would love to see AT&T;get thier shit together, but i doubt it.

I just wish they would realize that the ONLY reason i am thier customer is because i wanted an iphone. I didnt get the iphone because i was thier customer or liked thier service. There is a big distinction, and if they dont realise this, then FUCK THEM!

Jul 02, 09 - 04:46 pm Comment from: G4Dualie

@Michael

Makes you wonder why the sales people in their stores push every phone except the iPhone

It's simple, really. Margins.

The sales people are going to sell you the phone that puts the most money in their pocket, or clearance items.

Jul 03, 09 - 12:11 am Comment from: rjackb

@MZ
It is getting to be tiresome to point this out but... the quality of your cell carrier depends greatly upon where you are trying to use your cell phone so don't try to make generalizations about a specific carrier unless you include the location. I'm sure, if not positive, that every carrier sucks given a particular location. For where I live and for where I travel, AT&T;is by far the best carrier but YMMV.

Jul 03, 09 - 01:06 am Comment from: MZ

@rjackb
Yea i know that...I never said anything about that in my post. I actually get very good reception and fast 3G on AT&T;where I live (San Antonio, TX). The only times i get edge is if im in the basement of some building or sumthing. However, there are a lot of people that arent as fortunate as us, and cant enjoy "twice the speed" as they were promised. For example, when i was in San Fransisco and even Washington DC, the 3G was more spotty and way slower than where I live, even though its more of a major city than San Antonio. But that isnt even my main gripe with AT&T;, as it depends on where you live, and i guess you had the choice not to buy the phone if reception is bad where you live.

A more major issue that effects everyone for example is dropped calls. That is a problem across the board on AT&T;, and if you have an iPhone im sure you know that. This could be fixed if they spend some money on thier infrastucture, but AT&T;are shiesty pieces of shit.

Secondly, the fact that AT&T;blocks MMS on iPhones but allows it for all other devices on the same network is ABSURD! Like i said i dont really care about MMS, but its more a matter of principle. We are paying the same price as everyone else on AT&T;for our messaging plans, but we cant send MMS and they can!?! WTF? And the fact that they block iPhone users from sending MMS because were supposedly gonna overload thier networks since iPhone users use a lot of data is even more ridiculous!!! Isnt this discriination???

First of all, Im sure AT&T;had months of advanced notice before the 3Gs came out, giving them a chance to update thier network, yet they never did. Secondly, i thought the reason iPhone users had to pay so much more for our data packages ($30/month) than everyone else is because we would use a lot of data and hog up bandwidth. So why are we being blocked from using that bandwidth if we are already paying a premium to have the right to use it??? If the network really can handle it, why isnt that money being put into the network to add more bandwidth to make it handle it??? Where is my money going, other than the executives pockets??? If they really cant support the iPhone's bandwidth needs, then they shouldnt be selling it in the first place and should stop advertising and charging us up the ass for features we cant even use!!!

Then theres the tethering issue, customer service (which i dont have major issues with but many others do), and the fact that AT&T;forces Apple to either block apps all together, or limit thier usability (such as Skype, where you can only use it on wifi even though we pay a premium for "unlimited" data usage), etc. etc.

Dont get me wrong, I dont mind paying as much as I am for the service as long as i get what i pay for. I love my iPhone, and I stick with AT&T;only cus I cant use 3G on t-mobile. Im not asking AT&T;to throw me a bone, I just want to get what I was promised, and what I am paying a premium for from my hard earned cash. I do not like being ripped off in such an in-your-face and what-are-you-gonna-do-about-it manner, especially since iPhone owners like me are making record profits for AT&T;.

Sorry for the rant. I could go on and on...but im tired of typing. The main point im trying to make is that AT&T;is ruining the flawless user experience that makes the iPhone attractive in the first place, and the key to its success. AT&T;are hampering innovation on the iPhone, and holding it back from its true potential, and ruing the user experience. Im sure there are a lot of features Apple would like to put in the iPhone that they cant because of AT&T;sluggishness, greed, and backwardness (im sure video calling isnt implemented on AT&T;). And although Apple has been able up to this point to sell millions of iPhones despite AT&T;, its getting to the point where it is making Apple and the iPhone look bad, and thats why i think (and hope) Apple will drop the exclusivity contract with AT&T;when it expires.

Jul 03, 09 - 01:13 am Comment from: MZ

*sorry i meant to say:

"im sure video calling isn't *included on the iphone because* of AT&T;"

Jul 03, 09 - 02:32 am Comment from: ken1w

> Most transactions processed via our IT systems in a single day

Apparently, it would have been even higher, if everything was working the way it was supposed to... smile

And Apple would have saved some money on those iTunes gift cards.

Jul 03, 09 - 04:04 am Comment from: stucktrader

trading regrets... sold AAPL for 70 in Jan 2006 to get into stock options. Sure made thousands on AAPL and proceeded to lose it later May 2006. Officially the day (in my book), as the day Wall Street realized it was in huge trouble...

Note the real crash happened Oct/Nov 2008, but the 1st warning went out May 2006 and the REAL warning again January 2008, where even CEOs said to expect something bad.

Wish i held on to my option puts... oh well... lesson kind of learned.

AAPL will again crash in the future, but i will have little to do with actual company performance. Just more broad market uncertainty, profit taking and manipulation

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