Day: June 16, 2009

Be prepared for long lines and shortages.

Apple will officially begin selling its iPhone 3GS on Friday, but some analysts are predicting shortages that could leave some consumers disappointed. If advance orders are any indication, the demand for the iPhone 3GS may outstrip the at-launch supply.

AT&T, the exclusive carrier of the iPhone in the United States, and Best Buy have sold out of inventories for Apple’s latest smartphone.

Apple was still taking orders on its Web site Tuesday, but the June 19 delivery date is not a guarantee. Likewise, AT&T posted a message on its Web site that indicates advance orders will shop seven to 14 days after the order is placed — on a first-come, first-served basis.

I won’t be in any line nor will I be worried about the status of product in stock. I have an iPhone 3G that is a little more than 6 months old, so you know what that means. Yep, I’m stuck in AT&T contract hell. And there’s no way in hell I’ll be shelling out $400 for a new phone. And I won’t buy my way out of the contract either. That’s the way it is.

Yeah, there are ways to get an iPhone 3GS for less, but as far as I’m concerned, the hassles are just too great. So, have fun you new iPhone 3GS users. Have fun with your compass and your 3.0 megapixel camera. I’ll be joining you in another year…maybe.

It’s a drag when you’re no longer #1.

MySpace, the social network owned byRupert Murdoch’s News Corp, said it will cut 30 percent of its staff to lower costs as it struggles to stay popular in the face of rising competition.

MySpace will be left with about 1,000 employees, it said in a statement released on Tuesday. The company declined to say how many people work at the service, but the percentage suggests that about 400 people will lose their jobs.

The cuts, which were presaged in several blog reports in recent weeks, are the biggest move so far by new management at the social network and an attempt, it said, to return the service to a “start-up culture.”

“Simply put, our staffing levels were bloated and hindered by our ability to be an efficient and nimble team-oriented company,” MySpace’s new chief executive, Owen Van Natta, said in the statement.

“I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace.”

First of all, why in the world does a social networking website need to employee 1,400 people? And what do those people do? Seems excessive to me. That seems to be a general problem with Web 2.0 sites. Get most of your money from venture capitalists firms. Spend it all so you can go ask for more. Tell the VC’s that you’re business plan is on a slow ramp up, and that you’ll be profitable “soon”.

I think Facebook will be next, unless they find some real way to generate revenue. They won’t be able to get it from users – free is free and I doubt many will pay to keep their profile. It will forever be subsidized until Mr. Deep Pockets gets tired of waiting for the big pay day.

You can’t just pepper a page with a bunch of ads and pop ups and expect it to last. Another business model will have to come along if these things will survive for decades to come.