The iPhone works again. Calm returns to earth.

UPDATE: 4:50.

The iPhone 3G launched Friday around the world -. and promptly ran into problems. But the technical issues appear to have been corrected. Old iPhones work again. New iPhones are being activated.

The blogosphere, as you might expect, covered the collective howling as if it were the Olympics. "Y2K wasn't this much fun," said Good Morning Silicon Valley. iPocalypse Now, is how they described it at All Things Digital. Six million iBricks, noted Engadget.   

Meanwhile, AT&T reports that most of its stores have sold out of the iPhone and people are still waiting with hope outside Apple stores in New York City, with security guards offering suggestions of how long the wait might be. Engadget does a run down of supply and demand around the world. Tampa still has the iPhone...at least at the time of this update.

UPDATED. 10:30.

Many people with old iPhones who tried to download the new software have run into serious problems. The download is taking a long time. Once downloaded, some say the phone then freezes, allowing just emergency calls. This comes on the heels of complaints that the phone's new e-mail service MobileMe wasn't working after Apple took down its old service .Mac.

Inside the stores selling new iPhones - people are being told to activate them at home, a reversal of what Apple said would happen in the store. An AT&T spokeswoman attributed the change to problems accessing Apple's iTunes store to get the new software. "Apple is working on it feverishly," she said.

In the meantime, people who have made their iPhones the center of their universe are facing their existential crisis with a total freak out on Apple's blog. Some bloggers advise people not to update or to look for a back door way to update the software.

The iPhone began selling around the world today, with crowds lining up outside Apple stores and cellular company stores. They greeted the opening of store doors with cheers.

The iPhone 3G is the second version of Apple's gadget, which first went on sale in June 2007. Apple says that more than 6 million phones had been sold by early June and it hopes to sell 10 million by the end of this year. The new one runs on a faster network and, in the United States, costs $200 less, although the price drop is made up in higher monthly service charges to Apple's exclusive U.S. partner, AT&T.

The phone is going on sale in 21 countries, many for the first time. Its launch comes as Apple opens up an online store for games and programs for the iPhone.

Getting people through the stores will be today's challenge. Already, there have been glitches. A spokesman for AT&T told the Associated Press that a problem with Apple's iTunes software impeded activating the phone inside stores, as had been expected.

In San Francisco, a cheer erupted when the doors opened at the Apple store on Union Square, where people had spent the night in tents and handed out doughnuts to police officers. A shorter line of people waited outside the AT&T store a few blocks away.

Nicholas Panzer, 26, a waiter, knocked off work at 1:30 a.m. and arrived at the Apple store at 6 a.m. to be the 151st person in line. The reason to come out early: "I'm guaranteed to get one today." Already an iPhone owner, he said he had to buy the new one.

Standing next to him was Scot Peterson, a designer, who held up a smashed iPhone. "Time to get a new one," he said.

Spencer Duclos, 16, a tourist from Reno, said he just had to have the phone. Standing in line with his father, he showed his Samsung phone and then put it away. The iPhone is "the end all and be all of all phones. You don't need anything else."

-- Michelle Quinn

Photo of iPhone buyers waiting in Santa Monica. Credit: Jerome Adamstein / Los Angeles Times

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Comments

[Phil Wheeler]

I upgraded my original iPhone to v. 2 software today. Time required was about an hour and a half due to the Apple store server overload. It was in the "Emergency Mode" for a while, but I kept trying and it worked. Then I was able to download two apps (an outliner and solitaire) and they both work.

Considering this being a major worldwide rollout day, I was pleased it went as well as it did.

Eventually I plan to upgrade to 3G, for greater speed and GPS. But that will be after the initial mad rush.

[Jesse]

If you WANT the new stuff first, you have to live with the consequences!

There are kinks in everything. People just aren't patient anymore, everyone thinks they're important and want what they want immediately with no hassle.

I have a first gen iPhone. I downloaded the updates. Yes it took a little while to get it to work, and i understand its because of the popularity this is happening. Anyway, it works great.

You don't like it and think YOU are important enough that you can bring a company like Apple down by yourself, have at it.

[YOUR SAVIOR]

DONT BUY THE IPHONE!!! ITS A COMPLETE RIP OFF AT THIS POINT!!! APPLE AND AT&T HAVE FAILED!!! THE STOCK IS DROPPING LIKE CRAZY!!! ITS JUST A PHONE PEOPLE!!!

EACH STORE ONLY HAS 70 PHONES, YOUR CHANCE OF GETTING IT IS SLIM TO NONE AT THIS POINT. THEY HAVE FAILED...

SALE YOUR APPLE STOCKS AND GET THE NIGHTMARE OVER WITH.

IPHONE 3G IS A DISAPPOINTMENT!

[heathsnow]

The supply issue is just at AT&T stores I believe. That's how it was last year anyways. I went to AT&T and they were sold out but I then called the Apple store and they had plenty. I went to the Apple store and it was hassle free (last year). I'm going to my nearest Apple store this afternoon after work and picking up the new 3g so hopefully these issues are fixed by then.

[Elvis]

I might just wait for the BB Bold (9000) or the Nokia N98 on a competitors service. At a certain point, the number of users will drag down the ATT 3G network to a crawl. Very disappointing that Apple and ATT did not take the time to invest in more infrastructure and testing prior to a world-wide launch. As one new owner said, Apple had the right idea with the original launch, so why did they change the activation process? I suspect it had to do with the new subsidized agreements. Most cell phone users and especially Apple gear owners are already tech savvy. I don't need some ATT bozo making minimum wage to help me activate cell phone. The other very disappointing fallout is the fact that the independent ATT (formally Cingular) stores are completely cut out of the process. Not that the independents would have made any money on the phone itself, but they could have made money on accessories and repeat business. If my recollection of what the independent agreements are, the independents get a portion of the service revenue for the the first 6 to 9 months before the contract transfers to ATT. My guess is that ATT and Apple got greedy and did not want to split the revenue with an independent in order to keep the price point and subsidies down. Frankly, for the price of an unlocked iPhone3G, I would rather have an HTC Touch Diamond or Pro (www.htc.com) . The HTC Touch are 1000% better than the iPhone3G.

[Fernando Pineda]

Posted by Valerie

"Hooray for a phone I can't use and the debt that I have accumulated all just to have an apple phone."

May I ask, how low of an IQ do you need to wait in a 3 hr line for a phone that requires you to go into debt?

The sad thing about this is that people who don't have to work or don't have work are spending all they have or don't have to get this phone. Reminiscent of our current housing crisis...

[Fernando Pineda]

Posted by Valerie

"Hooray for a phone I can't use and the debt that I have accumulated all just to have an apple phone."

May I ask, how low of an IQ do you need to wait in a 3 hr line for a phone that requires you to go into debt?

The sad thing about this is that people who don't have to work or don't have work are spending all they have or don't have to get this phone. Reminiscent of our current housing crisis...

[YOUR SAVIOR]

THE PLAN RATE FOR THE IPHONE IS RIDICULOUS. AT&T IS PRACTICING SERIOUS CAPITALISM HERE. I CANNOT BELIEVE APPLE IS STUPID ENOUGH TO SIGN A 5-YEAR CONTRACT WITH AT&T.

THE AMOUNT OF AMOUNT AND EFFORT THAT EVERY PERSON HAS TO INPUT IS JUST NOT WORTH IT. ITS JUST A PHONE... ITS NOT EVEN THAT GREAT.

DONT LET THE ADS GET TO YOU!

[No_Tohaters]

I think u guys are all 9-5 type wonks lighten up player haters.
maybe those people waiting have flex schedules..e.g. work in the creative industries (e.g. design, programming) etc.

[Bob Perdriau]

My take on all the trouble with the iPhone today is that it can be laid squarely at the feet of AT&T. The company has not a single clue when it comes to relating to consumers. Or, if it does, it surely does not give a shit.

To insist on in-store activation at 15 minutes per and depending on only Apple servers is just pure crap compared to the elegant system Apple implemented for the v1 phone.

AT&T is a major weak link in the iPhone chain.

They claim they don't want to be just a dumb pipe. They claim they want me to buy their stupid version of digital TV. Fat chance!

AT&T is suited only to being a dumb pipe and the sooner that can be brought home to them the better off the country will be.

[RYAN]

As an original Iphone owner... I waited at an ATT store, for 4 hours..... And this location was ranked as one of the best customer service location in so cal. They provided us with donuts from Krispy Kremes, and bottled water as refreshments for waiting in line. They also had armed security guards, probably for their safety. They were willing to work with us, any which way we have it, just as I expected.... I got a white 16 gig, and told to complete the activation at home on Itunes, but were told to wait 2 to 3 hours, because Itunes was down. Now, it's working, no problems at all. For all those who love to hate, hate all you want.
But, to put this whole software issue, it's not bad.... when comparing this to the problems one might have with a brand new laptop with vista, and the problems you will have within the first week of figuring it all out.

And for all those who say the new Iphone isn't that great... talk is cheap! I have one and will say its way better in terms of the hardware and the endless possibilities of the new app store. I also have the old iphone, and the physical differences are highly visible, the internal ones will help make this phone stand out now, and the foreseeable future, well until the next iphone version release comes out.

Apple went to Verizon first, but when Verizon didn't want to let Apple have so much control of the phone and the software. Apple, had to go to number 2, or 3. ATT was the only company willing to work with Apple for the 1st gen Iphone. If they weren't able to work a deal with anyone, they were about to just bring it out. Now, 2 years after the first sign of the original Iphone.... ATT is still working out there customer service kinks.... which hopefully in five years it should be a little better than it is today.

[ItIzWhtItIz]

So all the whiners and negative-bloggers did not think for one second that millions of iPhone purchasers attempting to activate would not experience any difficulties with network overload? What are you all, boneheads? I guess buying top shelf technology does not help any with improving your intelligence. When ANY system is overloaded, something along the path will in it’s worst case scenario - break. This was a glitch and will or has been fixed.

Geeze, all you who complain are pretty damn pathetic. I have never had the displeasure of meeting, listening, and reading from such self entitled (it’s all about me) morons until now. I have just switched over from RIM and YES I did experience a delay BUT not stupid enough to stay in line the night before to get it, then complain about how long you were in line when things don't work out smoothly. THAT was your prerogative.

Apple should be proud that their network was inundated by that many subscribers. What that means for us ALL is that Apple WILL make it even better. Name how many Cell Phone manufacturers or Operating System manufacturers would step up like Apple does, yea I thought so. Please, for your sakes, put things into perspective. It's an iPhone and is a great device, but don't forget - our country is at war and our men and women are dying while you moan and groan about your being inconvenienced.

When all is said and done, you know that everyone will have their fingers and faces glued to their iPhone - PLEASE no texting while your drive, it’s a car not a phone booth you idiots.

[Mizzy]

Whatever iphone...I'm waiting for the HTC TouchPro!
Now that's a cellphone!