Knoxville (WVLT) - Apple's new I-phone drew long I-lines at Knoxville's Apple and AT&T stores all day Friday.

Hundreds lined up to get their hands on the latest model of Apple's cell phone....just released Friday.

Volunteer TV's Mike McCarthy has the story.

With a slumping economy, how big of a priority is this phone for buyers? They say it's a gadget you gotta have. The I-phone debuted last year. Apple claims the new model's twice as fast at half price. The more expensive model cost just under three hundred bucks, but shoppers say it's money well spent on the device that's also an Ipod, gps navigator, web browser, calculator, calendar...and phone.

Amanda Vaughn already owns Apple's older Iphone. She's buying the upgrade to keep from dialing 911 on her relationship.

"My fiancee has been harassing me for my phone for a month," Vaughn said.

So the bride-to-be's in for a shuffle and not the Ipod kind.

"I told him as soon as another one came out, I would buy that one," Vaughn said.

The couple's among those still waiting in line for the new Iphone at Knoxville's Apple Store. Nearly ten hours after the doors opened, it's still about two-hour-wait to get the gadget.

"I came after work. I didn't get up and stand in line from 6:00 or whenever, there some crazy people that we really all about this," customer Tim York said.

Enough turned out to wipe out supplies at all Iphone-carrier, AT&T's, Knoxville-area stores.

"I was a little surprised that the lines were longer than last year, but the demand has been incredible, and we're still fulfilling orders," Apple worker Jim McHargue said.

And as the price of gas, milk, and other products continue to rise...

"There's no place I got that it doesn't go," York said.

I-fans like Tim York crunched the numbers...on his old Iphone...so he could get less-expensive new 200-dolllar model.

"It's my share of the stimulus check. We budgeted out a certain amount for each member of the family," York said.

"Money's tight for anybody, but if you just do a little bit of planning, like we did, it wasn't that big of purchase. It's still 200 dollars that we could have put somewhere else, like 200 dollars for gas," Vaughn said.

But it's what you won't find in the bag...

"For peace and quiet, yes," Vaughn said.

That makes the purchase so worth it for Vaughn.

Some I-phone buyers did encounter some I-problems. They couldn't activate their phones. AT&T says so many worldwide users were trying to turn-on their phones at once, they overloaded the Itunes server. Also, a software update for the old Iphone also came out Friday. AT&T asked customers to to finish the activation at home.