iPhone demand buckles Optus network?

Optus has confirmed its retail stores are experiencing problems signing up customers of Apple's much-anticipated iPhone handset due to difficulties with its internal computer network.

Customers at some of the telco's resellers, such as Allphones, have been told Optus' computer sign-up network was unable to deal with the load caused by thousands of people across the nation wanting to buy the 3G iPhone when it went on sale this morning.

At least one Optus store in Sydney's central business district has reported it has sold out of iPhones already, while Gizmodo has reported that Optus' flagship store in George Street, Sydney, which opened at midnight this morning to sell the iPhone, had only 500 handsets in stock from launch.

A spokesperson for the telco told ZDNet.com.au the network was "not down all the way... It's going back up and down."

"Stores are still processing customers, and people are still moving through the queues," the spokesperson said.

The spokesperson couldn't confirm if the problems were caused by unexpected iPhone demand.