The verdict is in and the buzz around the internet is Apple is in the middle of a roll out nightmare. According to the New York Post (not normally a reliable source for anything) early in the day the iSNAFU has arrived on the streets of New York. The story reports that new 3G iPhone users have been experiencing problems getting the phone to boot out of the box.
A more reliable source Arstechica is reporting iPhone Parousia into activation apocalypse with customers in AT&T stores unable to activate their new iPhone due to the servers being down.
Also, the Apple MobileMe servers have been down all morning for us in the Midwest and persumably all over the world.
Inforweek is reporting Apple servers were overwhelmed by the huge surge in attempted activations of the new iPhone. Not only did the iPhone go on sale in the U.S but buyers in 21 other countries also drew down the capacity of Apple's servers to respond to phone activiation, software downloads by old iPhone users seeking to upgrade, and MobileMe initiates.
One Apple tech specialist explained that the Apple servers did not go down, they've just slowed to the point that it takes much longer than the patience of the iPhone users seeking to upgrade. When old iPhone users start to download the 2.0 upgrade and feel the stress of the duration, they stop the upgrade and then find their iPhone has been bricked and will not function for naything but emergency phone calls. Apple has designed the iPhone to work as a crude handset even if all the other software such as contact lists, voice mail and the operating system itself is not functioning.
CNET is calling the 3G launch one of the clumsiest product launches ever with Apple refusing to sell the new iPhone to "foundation" accounts, red lettered in their Apple Store computers as PLU. Those accounts, according to Matt Asay who found himself locked out of buying the 3G iPhone, must buy a iPhone from an AT&T store and not an Apple store.
Our advice to current iPhone users is to not upgrade until the surge is over.