Most iPhone owners gush but some have glitches

By Scott Hillis

SAN FRANCISCO (Reuters) - Proud owners of Apple Inc.'s iPhone raved about their first day with the device on Saturday, but a glitch took the shine off the year's most anticipated device for a few unlucky customers.

Of 11 iPhone owners contacted by Reuters on Saturday, nine reported little or no trouble setting up their handsets, a combined cell phone, music player and Web browser.

"It's awesome, it's the best thing I ever saw in my life," said New York private detective Jerry Gregory. "Once people see this phone they are going to want one. Everybody I show this phone wants one, even people who were anti-iPhone."

But Brad Bargman of Ft. Lauderdale, Florida, who waited in line 9 hours on Friday to buy his phone, said excitement turned to dismay when the device stubbornly refused to activate, meaning it can't be used.

"It's a real buzz kill," said Bargman, adding that repeated calls to AT&T failed to get the device to work. "Now I'm soured on it a little bit."

David Clayman, the third person in line at Apple's flagship Manhattan store, said he was still unable to activate his iPhone a day later, probably because he couldn't update the Apple software on his computer needed to start the process

The iPhone, which costs $500 or $600 depending on memory capacity, is activated through a process handled by AT&T Inc., the phone's exclusive carrier for two years, in Apple's iTunes online music store.

In a sign of strong initial demand, AT&T said it had sold almost all its phones within hours of the device going on sale at its 1,800 stores. The company did not say how many units it had sold.