AT&T has stopped selling the iPhone in New York for a variety of reasons that could range from credit card fraud to network over usage, according to a number of sources. As of now, if you were to go to AT&T’s online site to order an iPhone with a New York zip code, you get an error saying, “We’re sorry, there are no Packages & Deals available at this time. Please check back later.” As CNET found out, changing the zip code gives you plenty of options to purchase the iPhone.

AT&T’s Fletcher Cook officially comments to CNET to say, “We periodically modify our promotions and distribution channels.” Right, we’re certain AT&T decided against selling the iPhone in the last few days of the year because it ran out of promotions in a prime market like that. However, retail employees at AT&T’s New York Stores may have something a bit more believable. According to one customer service rep, the reason why AT&T halted iPhone sales was because its network couldn’t handle the load. Now that’s the real story and far more believable.

Another absurd reason is that a lot of credit card fraud has been going on specifically in New York related to iPhone purchases, and AT&T decided to punish everyone and halted sales. Uh, we don’t think so.

It’s about time AT&T realized its network needs to be massively upgraded, particularly in New York and San Francisco, to make up for the horrible service. But to stop selling a device that’s clearly in demand, that’s ridiculous. And to wrap up with something a little ironic, apparently Apple has no qualms about selling the iPhone directly in its NY stores. If you are itching for one, go directly to Apple, and they will be just fine in handing it to you. We don’t think Apple would be happy with AT&T’s decision to stop selling its devices like that.