Gadget lovers got upset when payment systems at one retail shop failed in UK, and their keenness to buy Apple’s much awaited ’iPhone’ were left frustrated on launch night.

The Chip and PIN credit card services at a number of Carphone Warehouse stores stopped on Friday evening, leaving staff and customers incapable of finishing their dealings.

Finally customers were granted to pay cash for their iPhones, something that is usually not permitted by Apple Company.

Carphone Warehouse stated that the payment system problem occurred soon after the iPhone moved on sale at 6.02 pm.

A representative for Carphone Warehouse said, “The issue was resolved pretty quickly. It had a minimal impact on sales.”

The online forums said that the Chip and PIN troubles would also have an effect on a number of Carphone Warehouse sales outlets crosswise UK.

According to the poster on the PC Advisor website, “It took me an hour [to buy an iPhone] in Sevenoaks, and I was allowed to pay by cash. A shambles really," while another poster on the same site recounted similar problems in Epsom where there was a "short interruption" when Chip and PIN went down, but that it was "all good" after that.”

Apple’s new iPhone that valued at £269 is a mixture of an iPod music player along with a Safari web browser plus a mobile phone.

Recently the Time magazine has called it the ‘invention of the year’, but the phone has been criticized for its basic two-megapixel photographic camera and the truth that it depends upon on slow Edge technology to browse the net when it is not within a wireless internet zone.

Those who purchase an iPhone also have to enter an 18-month deal with O2, Apple’s exclusive network partner in the UK. Monthly tariffs would be started from £35 per month.

In spite of the hype circling the iPhone’s launching, early reports recommend that there was none of the frenzied queuing that many specialists had anticipated. Although several people outside Apple’s flagship store on Regent Street had camped in line for more than 36 hours, the majority of branches of O2 stores and Carphone Warehouse shops had a steady drop of customers regardless of an increase.