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AT&T stops selling iPhone in New York temporarily

As we have reported in recent weeks about AT&T experiencing data problems in major cities like San Francisco and New York, it seems that AT&T has taken the next step in preventing the towers from being over loaded, by stopping any new sales of the iPhone.

AT&T admitted that smartphone consumers are using 40% of the total wireless data, and that customers need to reduce their usage or possibly pay more if they go over their 5GB allowance.

Customers who enter any New York zip code into AT&T's website while trying to buy an iPhone, will receive this error "Sorry this Package is not available in your area." However, customers can still purchase any other phone from AT&T with a New York zip code.

One AT&T online support said that the iPhone was taken off the website because of "fraudulent activity", and didn't provide any direct answers when asked about what "fraudulent activity."

An AT&T spokesperson, Fletcher Cook told Consumerist that "We periodically modify our promotions and distribution channels." It appears that AT&T has temporarily stopped selling the iPhone 3G and 3GS to new customers. Consumers can still purchase the iPhone through the Apple Store with an AT&T contract.

Update: iPhones are now back on sale for New York folks according to Yahoo! news. AT&T have given no reason for the temporary halt.

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