Sunday, August 8, 2010

Apple customers stew as glitches hit launch of updated iPhone

Over recent years, it has become a staple image of the technology industry: hundreds of gadget fans queueing all night to get their hands on the latest trendy gizmo from Apple. But eager devotees across Britain were left angry and frustrated yesterday after a series of problems hit the launch of the Californian company's latest product, the iPhone 3G.

The latest version of Apple's mobile phone - a faster model than the original iPhone released last November - was unveiled at shops around the world with much fanfare yesterday morning.

Instead of getting their new toy, however, thousands of British customers were delayed as a glitch hit the computerised credit checking system belonging to the mobile network operator O2.

"We can confirm that Apple stores are having technical issues connecting to the O2 systems," a spokesman said at the height of the problems. "We are working to get the systems back up to full speed as quickly as possible." Hundreds of customers arrived early at shops around the country for the launch at 8.02am - even the time itself chosen to squeeze out a little extra publicity for the launch. Minutes later, however, queues began to back up and new purchases failed to register.

"I was in the queue from 7am and didn't get served until 11.30am as their systems went down," said one disgruntled customer on the Guardian website. "It took around 40 minutes for each customer's credit decision to be made and at the end of all that they only had four 16 gigabyte models in stock - and this was the flagship Manchester store." Some dedicated customers took several hours to get their hands on an iPhone, while others simply gave up. "It's not ideal, but that's life," said 26-year-old Chris Moorby, who had queued outside the flagship Apple shop in Regent Street, London. "I'm leaving now because I've got to go to work."

Last night the problems were being blamed on the sudden influx of customers, which crashed the system and forced staff to run manual checks on all new accounts. However, it remains unclear why O2 did not anticipate the surge in demand. Carphone Warehouse, another chain selling the handset, had already announced that interest in the iPhone 3G was up to 10 times greater than its predecessor, and last week O2's website collapsed under the weight of traffic when it opened for orders.

But it was not only O2 which was struggling. A customer from Stafford, who had ordered his iPhone 3G online through Carphone Warehouse, said he had received a guarantee on Thursday evening that it would be delivered the next day. "I stayed at home for the delivery, but it never arrived," he said. "I finally got through to them on the phone and they said nobody would be receiving their orders until after the weekend. I've now cancelled my order."

Observers largely blamed the crash on onerous new sign-up procedures to try to reduce so-called "unlockers". These customers - who fail to sign up to a contract and use their iPhones on a different mobile network - are now forced to sign on the spot, and must provide photographic ID and detailed personal information.

Apple is desperate to make an impact on the enormous mobile phone market. The iPhone 3G boasts faster internet connection, satellite navigation and access to an online shop full of downloadable programs.

O2 has an exclusive contract to provide service to iPhones in Britain, and could come under pressure from the US technology giant if such problems continue.

Ian Fogg, a mobile industry analyst with Jupiter Research, said that all would be forgotten if O2 managed to get its systems working smoothly - but customers could still find it hard to get hold of an iPhone 3G if the gadget proved as popular as it appears. "Really these day one teething problems are just that," he said. "One of the big challenges for hit products is making sure that you've got enough to meet demand."

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