iPhone Turns Japanese Fenzy

The launch of Apple Inc.'s much-anticipated new iPhone turned into an information-technology meltdown on Friday, as customers were unable to get their phones working. The problem extended to owners of the previous iPhone model. A software update released for that phone on Friday morning required the phone to be reactivated through iTunes. IPhone fever was strong even in Japan, where consumers are used to tech-heavy phones that do restaurant searches, e-mail, music downloads, reading digital novels and electronic shopping. More than 1,000 people lined up at the Softbank Corp. store in Tokyo and the phone quickly sold out.

Apple's new iPhone is built on third-generation, or 3G, technology that is speedier than the original iPhone's network. Early demand was high for Apple's (AAPL - News) new and improved touch-screen smart phone. But the debut was marred by a problem with Apple's iTunes servers that prevented the phones from being fully activated. On Friday, Apple was working to correct the problem, which also affected users of the original iPhone who tried to download a software upgrade.

Apple fans across Asia queued for hours to get their hands on the new iPhone Friday, looking to be the first to own a gadget the company hopes will be as big a worldwide smash as the iPod. More than 1,000 people, many waiting through the night, besieged a store in downtown Tokyo as the iPhone went on sale for the first time in Japan, where having the latest gizmo is almost a national obsession.

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