He says he's been using an LG Viewty in the interim. "I've got most of the features in the phone I have now, but it just does them a lot worse."

However, there are people buying out of their contracts to get the latest iPhone 3G S. Dean Duncan, broadband specialist at Carphone Warehouse Oxford Street, said: "One guy paid £180 to pay off his current iPhone contract".

Marwa Hassan, a technology consultant and another member of the queue at the O2 store Oxford Street, was also upgrading the iPhone 3G. "I'm doing it as a new contract so I think it works out at £173," she said, adding that she only baulks at the price when comparing it to US prices. "I need it... well I don't need it but I want it," she said. "I didn't get the first one because I needed 3G."

Over the road at the Carphone Warehouse on Oxford Street, there are more staff than customers. Indeed, Carphone Warehouse staff on cigarette breaks could be seen attempting to poach customers from the O2 queue on the other side of the road. We witnessed one cry of "We got one!", as a customer was persuaded to buy his iPhone over the road without a wait.