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Edition: U.S. Article Comments (2) Save Email Print Reprints Most Popular Most Shared German student attacks Hell's Angels with puppy 15 Jun 2010 Obese have worse sexual health despite less sex 15 Jun 2010 Nutrients may be why some smokers avoid cancer 15 Jun 2010 Miley Cyrus "no underwear" photo is fake, blogger says 15 Jun 2010 Twilight studio sues to stop sale of Bella jacket 1:55am EDT Buffett, Gates ask billionaires to give away wealth 3:58pm EDT Actor Chris Klein arrested for drunken driving 3:19pm EDT There's more water on the moon than anyone thought 15 Jun 2010 Nintendo has considered buyback, says no new Wii 4:41pm EDT AT&T suspends preorders of iPhone 4 12:33pm EDT German student attacks Hell's Angels with puppy 15 Jun 2010 Nutrients may be why some smokers avoid cancer 15 Jun 2010 Buffett, Gates ask billionaires to give away wealth 3:58pm EDT AT&T suspends preorders of iPhone 4 12:33pm EDT Special Report: Big Pharma's stalled R&D machine 7:33am EDT Obese have worse sexual health despite less sex 15 Jun 2010 Soros: European recession next year "almost inevitable" 15 Jun 2010 There's more water on the moon than anyone thought 15 Jun 2010 Those who eat brown rice may have less diabetes 14 Jun 2010 Pakistan holds American man hunting bin Laden 15 Jun 2010 Pictures Best of E3 Highlights from the annual video game expo. Slideshow Apple iPhone 4 sets record sale pace despite gaffe Gabriel Madway and Sinead Carew LOS ANGELES/NEW YORK Wed Jun 16, 2010 2:20pm EDT Related News UPDATE 1-AT&T suspends preorders of iPhone 4 11:53am EDT AT&T hit with order and privacy complaints over iPhone 10:26am EDT UPDATE 2-AT&T hit with order, privacy complaints over iPhone 12:29am EDT Customers find delays ordering new iPhone Tue, Jun 15 2010 UPDATE 1-Customers find delays ordering new iPhone Tue, Jun 15 2010 A member of the media takes a photo of the new iPhone 4, showing its slim design, following the device's unveiling by Apple CEO Steve Jobs in San Francisco, California in this June 7, 2010 file photo. Credit: Reuters/Robert Galraith LOS ANGELES/NEW YORK (Reuters) - Sales of Apple Inc's latest iPhone blew away expectations despite an embarrassing ordering malfunction that turned away many would-be buyers, sending its shares nearly 3 percent higher on Wednesday. Technology | Hot Stocks | Media Apple said it sold more than 600,000 of its iPhone 4, a record for just a single day of preorders. That put the device on track to surpass sales of its previous iPhone as well as its iPad tablet computer, and sounded a strong challenge to rivals like Nokia, which warned of weaker-than-expected sales at its phones unit. But Apple apologized on Wednesday for having to halt sales temporarily after the surprising volume of online interest overloaded order and approval systems and supplies ran out. Exclusive U.S. carrier partner AT&T Inc said sales will resume as soon as inventory becomes available. Analysts have raised concerns that Apple supply shortages -- the company, for instance, had to delay the international launch of the iPad after it ran into component deficits -- would drive impatient buyers to rivals. The company, and AT&T, have also incurred several technical and public relations embarrassments this year, including a security breach on the iPad that exposed the email addresses of key public figures, and a felony investigation into a lost or stolen iPhone prototype. The Apple faithful, however, appeared unconcerned. Analysts said the pace of sales put the new iPhone on track to surpass sales of the previous model, about 1 million units of which moved in its first three days. Apple unveiled the slimmer, $199 iPhone 4 last week, kicking off its fastest-ever global product roll-out to try to stay a step ahead of rivals like Google Inc in a red-hot smartphone market. (For a Reuters Insider story see link.reuters.com/fas22m) The device boasts a higher-quality screen and longer battery life, video chat via Wi-Fi, and a gyroscope sensor for improved gaming. "It's a two-year replacement cycle. There are going to be a lot of people upgrading from the 3G, as well as incremental additions from new customers," Gleacher & Co analyst Brian Marshall said. VERIZON ON THE HORIZON? Shares in Apple, still hovering near a lifetime high, were up 2.6 percent to $266.33 in afternoon trade. AT&T stock slipped 0.2 percent to $25.47. AT&T said orders of the iPhone 4 on Tuesday -- the first day of online preorders -- were 10 times higher than for the iPhone 3GS last year. It said it chalked up more than 13 million visits to its website on Tuesday, including customers checking to see if they were eligible to upgrade to a new phone. It said that the number of eligibility checks was three times higher than its previous record for a single day. Hudson Square Research analyst Todd Rethemeier said the sales numbers were good news for AT&T, especially because of widespread expectations that bigger rival Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc, will soon be able to sell iPhones as well. "It means they're locking up customers into new two year contracts. Nobody knows when Verizon's going to the iPhone, but there's a lot of speculation this will happen." he said. "Anything At&T can do to lock up customers now is a good thing." The iPhone 4 is scheduled to hit stores on June 24. Apple's website said on Wednesday morning that pre-ordered phones would be shipped by July 2. It had previously promised shipments by June 24. Apple apologized for the ordering snafu, asking frustrated would-be buyers to "try again." But AT&T said the availability of inventory would determine whether it could resume taking orders. "We apologize to everyone who encountered difficulties, and hope that they will try again ... once the iPhone 4 is in stock," Apple said in a statement. (Additional reporting by Alexei Oreskovic in San Francisco, writing by Edwin Chan, editing by Matthew Lewis and Gerald E. McCormick) Technology Hot Stocks Media Comments See All Comments (2) | Post Comment Jun 16, 2010 3:46pm EDT A little patience will let you avoid the mad rush of people, and hopefully will help you avoid AT&T as well! Check out my apps: ShatterBall, BalloonMaker thinkB4Utype Report As Abusive Jun 16, 2010 4:10pm EDT A product is so hot that the orders for that product, not available for more than a week, overwhelm the seller, and this will make people seek another product? Really? tomgnh Report As Abusive See All Comments (2) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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