The launch of Apple's much-awaited iPhone 3G descended into farce today as computer problems left customers stranded outside stores for hours.

Technical problems meant the phones could not be registered online to get them working.

Mobile network O2 said its activation servers, which are needed to sign up new customers and electronically switch on their handset, initially struggled to meet demand.

The problems left customers who had queued through the night to be the first to own the new phone unable to purchase them.

Worst hit were those at Apple's flagship Regent Street store, which opened at 8am. It is believed additional problems with Apple's own in-store computers meant they were unable to access the O2 activation service.

By 9.30am disgruntled customers, many of whom had camped overnight, gave up and began to leave before buying the phones, which cost an average £99 tied to a 18-month contract.

Loud cheers went up when staff thought they had managed to register one customer's phone, only for the system to crash again seconds later. Then news began to filter through that some people were starting to get their phones registered at O2 shops while those at the Apple store still waited.

First in the queue at Apple in Regent Street, David Suen, was still trying to register his new phone an hour after the doors opened and finally left with a working phone at 10am. Mr Suen, from Canary Wharf, who had paid £41 on eBay for the prime queuing slot, said: "It's very frustrating. They are saying the server is down but it's a bit of a shambles to be honest."

Michael Vellacott, 31, a graphic designer in Streatham said: "Someone hasn't got their act together and we are paying the price. I have to be at work in 20 minutes and it looks like it isn't going to happen for me today."

Mark Olleson, 32, a software designer of Finsbury Park, said: "The device itself is very nice but it doesn't look like I'm going to get my hands on one today. I'm already late for work and I'm going to have to get out of here."

Earlier this week O2's servers crashed almost instantly when it began accepting online orders for the handset. O2 said system problems had hit customers early on but now Apple was suffering difficulties of their own. The spokesman said: "We had problems early on due to the weight of numbers, but we are now getting people through. I understand that Apple are now having problems, but you will have to speak to them about that."

Apple said it was investigating the problem, but would not comment further. Other Apple stores around the world opened at midnight but the London shop is banned from holding late-night openings after previous gadget releases were marred by violence.

The first people to buy the phone were in New Zealand, where hundreds queued at Vodafone stores. Softbank Corp, which sells the iPhone in Japan, said more than 1,500 people were outside its flagship store in Tokyo.

• 

  Lenny Henry: 'Maybe one day we can have a black Doctor Who'

  As he wins the outstanding newcomer prize at the Evening Standard theatre awards for his role as Othello, Lenny Henry has come a long way from black and white minstrels

  ---

• 

  Spread of the Jedhead

  Jedward, voted off the X-Factor this weekend, are the most obvious proponents of the sticky-uppy look - but the style crosses boundaries of age, gender, sexuality and taste, says Nick Curtis

  ---

Sky in plot to hire students on the cheap

Sky News is currently recruiting students as reporters for its coverage of next year's general election. However, the opportunity doesn't quite seem so appealing

All stories