Some of the first people in the U.S. to purchase the iPhone 3G walked out of an Apple Store in New York disappointed Friday when Apple's plan to activate the new devices in stores backfired.

Problems with the iTunes server caused some enthusiasts who had waited in line for hours to walk out of the store unable to use their new iPhones, according to the disgruntled customers.

"I've got two phones on me and neither of them work," said Adolfo Peralta, a Brooklyn resident who lined up to purchase the iPhone 3G at 6:30 a.m. local time for the 8:00 a.m. SoHo store opening. "I have to go find a pay phone to make a phone call."

Apple Store employees deactivated his original iPhone to activate his new one, but the activation could not be completed because they could not connect to iTunes, he reported.

Other enthusiasts reported similar issues as they left the store on Prince Street at around 10:30 a.m.

Anoele Perillo, who got in line at 7:00 a.m. outside the SoHo store to purchase her iPhone, stood outside around 10:30 a.m. smoking a cigarette while she waited for problems inside the store to be fixed.

"All of the systems are down," Perillo said, adding that she had finished two crossword puzzles while waiting for her iPhone activation to be complete. She said employees were shutting down some computers at the store to try to fix some of the problems with the iTunes network the store was experiencing.

Apple requires customers to activate the iPhone 3G in stores where they were purchased. This was not a requirement for the original iPhone, which was released a little more than a year ago.

Apple did not immediately return requests for comment Friday morning. An Apple Store employee at the SoHo store said no one there was qualified to comment on the problem, but said that to him, things "appeared to be going smoothly."

Some customers did leave the store with their iPhones successfully activated and reported no activation problems, they said.

As customers waited for their iPhones to be activated at the SoHo store, more continued arriving to purchase the phone. The line snaked for several blocks by 11:00 a.m. local time.

The activation process was also slow at Apple's flagship New York store on Fifth Avenue and at the Apple Store in downtown San Francisco, customers reported.

The IDG News Service is a Network World affiliate.