Apple has managed to botch both the iPhone 3G and the firmware 2.0 for the first-generation iPhone launches, due to an appalling lack of preparedness in handling the online activation requests and updates, respectively. It's almost unbelievable that customers encountered the same major problems as last year, at the launch of the previous iPhone, with the activation process.

Apple’s servers were overflowed by the customers trying to activate their new 3G iPhone and by those who tried to upgrade their older iPhones to the latest software. In fact, last year, when the initial iPhone was launched the customers have reported similar activation problems and Apple tried to avoid running into same issues this time by advising the clients to activate their iPhones in-store.

However, according to various reports, salespeople instructed customers Friday to go home, connect the phone to a personal computer and download new software to activate it. Unfortunately, it seems like the demand was much bigger than anticipated and reports about activation problems were pouring in on Friday.

AT&T spokesman, John Britton, who said that Apple’s iTunes software crashed globally for several hours due to the high volume of traffic. Britton explained that unlike last year, the 3G iPhone was launched in 22 countries and the worldwide demand was unprecedented.

Also, some customers, nearly two days after the firmware 2.0 launch for the older iPhone, are still unable to update. iTunes tells them that "this version of the iPhone software (1.1.4) is the current version." Furthermore, Erica Ogg over at CNET News reported that some first-generation iPhones bricked following the update to firmware 2.0

Some articles, including one of my own, have concluded that the new iPhone 3G is not worth the upgrade for those who already own the first-generation gadget. However, I overlooked that is perhaps the device's most important improvement: a standard-sized, 3.5mm headphone jack. Finally, all your headphones will fit perfectly without any stupid adapter.

Together with the iPhone, Apple's AppStore was also launched, providing the first 500 third-party applications to iPhone and iPod Touch users. Apparently, around a quarter of these are free, while most of the rest cost less than $10. About a third are games. The applications can only run on iPhones and iPod Touches updated to the latest firmware, 2.0, or on the iPhone 3G which includes the new firmware.

Those pondering the upgrade to a 3G iPhone should remember that the upcoming 2.0 firmware, available for free to all first-generation iPhone users, will bring to their "old" gadget most of the functionality of the iPhone 3G, minus the 3G support and the GPS antenna. And, of course, minus the standard-sized, 3.5mm phone jack!