The new and improved iPhone runs on 3G networks for faster Internet access and comes stacked with applications such as GPS and corporate email.
The iPhone 3G is also cheaper than its predecessor -- $199 for the 8-gig, and $299 for the 16-gig. But it will be costlier to use, about $10 to $15 more a month.
The demand is expected to be high. Those in line have been eagerly awaiting the iPhone 3G's debut, others just like to be part of the hype and the privilege of saying they were among the first.
"I like to be first, I was really disappointed. I got set up near the door, I was first. I walked to the corner and those guys were set up since last night so. When I saw that I was like, geez, I really screwed up, because I could have come last night," said Taylor Barcroft who is second in line.
"I think every cellular company is going to come out with a cool phone, Verizon has their phones. One thing Apple has done is raise the bar, but it also means that there will also be a lot of competition and of course that's very good for consumers," said tech analyst Larry Magid.
Samsung is an example of a company trying to compete with Apple. It released the instinct last month, which is very similar to the iPhone. It is a touch pad phone and has the same sleek look as the iPhone.
But for these die hard apple fans, it's all about the new iPhone 3G. They go on sale at 8:00 a.m. on Friday, so these guys have a few hours of waiting left to go.