Rush at stores for iPhone launch

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Carphone Warehouse, O2 and Apple are braced for huge queues and a surge of customers when the must-have gadget goes on sale.

The iPhone is tipped to be the biggest selling Christmas technology gift - despite some criticism of its £269 price tag.

Its mobile phone will run only on the O2 network, with owners signing an 18 month contract on tariffs of £35, £45 or £55 per month.

The 8GB device combines a touch-sensitive mobile phone handset with a built-in iPod media player and a wireless internet browser.

Die-hard fans started queuing outside Apple's flagship store on London's Regent Street on Thursday morning.

Friends Graham Gilbert and Nik Fletcher huddled under umbrellas equipped with sleeping bags, food and chairs as they began their wait.

The iPhone goes on sale simultaneously at about 1,300 Apple, O2 and Carphone Warehouse stores across the UK and via the firms' websites.

Carphone Warehouse expects Saturday to be its biggest sales day because of the Apple gadget.

Describing the iPhone's appeal as he waited in the rain on Thursday, Manchester Metropolitan University computer studies student Graham Gilbert, 22, said: "It is amazing. I just like the fact that it brings everything I carry with me into one device. I don't have to think - 'have I remembered my iPod?'"