Meanwhile, at an AT&T store in downtown Boston, Craig Henry took a sick day from work to gain the second place in a line of 65 people.

"I have a Motorola Q and a BlackBerry, but this lets me get rid of the phones and the iPod," Henry said. "I'll sell it (the iPod) to you if you want."

Apple has prepared for what it calls "iDay" with the company's customary secrecy, sharing few details about the phone's internal workings or how many phones it has manufactured for the launch.

The company has said it wants to sell 10 million units worldwide by 2008, but CEO Steve Jobs warned on Friday that he may not have made enough iPhones to meet demand for the launch. In fact, that goal is modest by Apple's own standards; the company sold more than 10 million iPods during the first quarter of 2007 alone.

Other factors that could lead to slow sales are consumer wariness about the iPhone's battery life, the utility of its virtual keyboard, and its high price. The phone comes in a 4GB model for $499 or 8GB model for $599 and requires a two-year AT&T service plan ranging from $60 per month to $100 per month.

However, Apple says the iPhone will win converts with its touchscreen interface and combined functionality of a mobile phone, iPod music player, and mobile Internet browser. The company says those features will differentiate the iPhone from other smartphones like the Motorola Q, Palm Treo, Research in Motion BlackBerry, Samsung BlackJack, Sony-Ericsson W900-series, Nokia N-series, and LG Electronics Prada.

To handle the expected rush for iPhones, Apple has extended the hours in its 164 U.S. retail stores until midnight. But the majority of customers will buy the phone at one of the 1,800 AT&T retail shops, also scheduled to push their usual 8 p.m. closing time back to 10 p.m.