Let's see now: Apple knew exactly how many units were shipped to their & AT&T stores, hence they knew exactly how many iTunes update server transactions they needed to handle the load....and the whole systems crashed? Have they never heard of capacity planning?
This MacWorld article says it all . . . well, almost
http://www.macworld.com/article/134442/2008/07/iphone_launch.html?lsrc=newsalert
From CNN:
A spokesman for AT&T, the exclusive carrier for the iPhone in the U.S., said there was a global problem with Apple's iTunes servers that prevented the phones from being fully activated in-store, as had been planned.
Instead, employees are telling buyers to go home and perform the last step by connecting their phones to their own computers, spokesman Michael Coe said.
However, the iTunes servers were equally hard to reach from home, leaving the phones unusable except for emergency calls.
The problem extended to owners of the previous iPhone model. A software update released for that phone on Friday morning required the phone to be reactivated through iTunes.
"It's a mess," said freelance photographer Giovanni Cipriano, who updated his first-generation iPhone only to find it unusable.
When the first iPhone went on sale a year ago, customers performed the whole activation procedure at home, freeing store employees to focus on sales. But the new model is subsidized by carriers, and Apple and AT&T therefore planned to activate all phones in-store to get customers on a contract.
The new phone went on sale in 21 countries on Friday, creating a global burden on the iTunes servers.