AT&T Resumes Online iPhone Sales in NYC

Following the company's decision to halt online iPhone sales in the New York City area over the weekend, AT&T reversed itself and began offering Apple's combination iPod and smartphone through its Web site late on Monday, according to the New York Times.

AT&T initially told customers the iPhone wasn't available in the area because there weren't enough cell towers to handle the load, but later changed its tune to say the decision was driven by "increased fraudulent activity in that area when ordering the iPhone."

An AT&T spokesperson offered up a third reason by saying ""We periodically modify our promotions and distribution channels."

Despite AT&T's own Web site sales blackout, the iPhone was still available in its own retail stores, Apple Stores, and Apple's retail Web site.

AT&T isn't elaborating on the incident, and is sticking by its spokesperson's statement even after resuming online sales.