iPhone News Updated

Apple, AT&T sued for ‘overloading’ network with iPhones

An iPhone customer has sued Apple Inc. and its exclusive U.S. wireless partner AT&T Inc. for selling too many of the smart phones, according to a report from Bloomberg News.

The customer claims the high-speed phone network has been “overloaded” and unable to deliver promised performance.

The iPhone 3G, designed to work with AT&T’s faster third-generation network, switches over to slower networks because of the “high volume of 3G iPhones sold,” according to the Aug. 29 complaint filed in San Diego. Plaintiff William J. Gillis Jr. is seeking class-action, or group, status on behalf of other users.

Cupertino-based Apple (NASDAQ: AAPL) sold 1 million iPhone 3G handsets in the first three days after the device went on sale July 11. The company says the new model is twice as fast as the original Web-surfing handset, first offered in June 2007. Apple released a software update earlier this month to improve network connections after some customers complained about dropped calls and sound quality.

“Apple and AT&T have misrepresented to the public the speed, strength and performance of the 3G-bandwidth network,” according to the 14-page complaint.

Apple does not comment on pending litigation, said spokeswoman Susan Lundgren.

Apple was sued last month by another customer who complained of dropped calls and slower-than-promised download speeds over the Internet. The iPhone 3G connects to the network “less than 25 percent of the time,” according to a complaint filed Aug. 19 in federal court in Birmingham, Ala.

Silicon Valley / San Jose Business Journal
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