According to reports, AT&T stopped selling iPhones on their website to customers in the New York City area in late-December 2009. Customers who provided a New York City zip codes and attempted to buy an iPhone on AT&T's website, received the message "We're sorry, there are no Packages & Deals available at this time. Please check back later."http://consumerist.com/2009/12/att-customer-service-new-york-city-is-not-ready-for-the-iphone.html

The Consumerist blog reported that AT&T halted service and the sale of iPhones in New York City on the poor wireless service in the area. The article in the Consumerist quoted an AT&T customer service rep as saying "New York is not ready for the iPhone" and "You don't have enough towers to handle the phone."http://consumerist.com/2009/12/att-customer-service-new-york-city-is-not-ready-for-the-iphone.html

The Wall Street Journal reported that customers in New York City could still purchase iPhones at AT&T stores and Apple stores.http://blogs.wsj.com/digits/2009/12/28/online-iphone-sales-interrupted-in-new-york/ AT&T announced that it had resumed its online sales of iPhones as of around 3pm, EST.http://www.huffingtonpost.com/2009/12/28/att-stops-selling-iphones_n_404801.html

Despite some reports that New York City has "data congestion," others blame the issue "fraud problems". Blogger Peter Kafka from the MediaMemo blog wrote that, "AT&T service reps have been telling New Yorkers like myself that it won't sell us the phone online because of fraud problems." This allegation was unconfirmed. CNN received an e-mail 'explanation' from AT&T which stated, "We periodically modify our promotions and distribution channels."http://www.cnn.com/2009/TECH/12/28/iphone.sales.nyc/