Apple iPhone Hype Machine in Overdrive

Pedestrians use their cell phones as they passes a window display advertising Apple's iPhone at an Apple Computer store Monday, June 25, 2007, in downtown Chicago. Even for a company that's mastered the art of product-launch hype, Apple Inc. has propelled iPhone hysteria into the stratosphere. But skeptics wonder whether even the most innovative product could live up to the iPhone's lofty expectations - and whether the pre-launch anticipation has spiraled too far out of control. Scrutiny of the product is so great that any small disappointment could send the stock plunging, experts say. (AP Photo/Charles Rex Arbogast) (Charles Rex Arbogast - AP)

But the hype has also hurt Apple.

The launch is being so closely watched that Apple's share price plunged more than 4 percent in a matter of minutes last month after a rumor about a delay was reported on Engadget.com, an electronics Web site. The rumor was quickly corrected by Apple, and the stock largely recovered by the end of the day.

"That just shows how powerful this has become," said Chris Hazelton, analyst with market researcher IDC, who said the amount of hype is "almost dangerous to the success of the device."

"God knows what's going to happen when the reviews come out," he said.

Die-hard fans are expected to camp out in front of Apple and AT&T stores to get a shot at snagging one of the iPhones, which are being sold on a first-come, first-serve basis starting Friday evening.

Apple has been famously tightfisted in limiting the number of review units before a launch, and the iPhone is an extreme example of the lengths the company will go to keep its prized gadget under wraps until the last minute. So far only a handful of reviewers are believed to have gotten units.

Dan Frakes, senior editor at Macworld magazine, said he will be one of a half-dozen writers and editors from his magazine queuing up early Friday. He hopes to buy an iPhone so he can write a product review.

But like many people debating whether to buy the iPhone, he still has questions about whether the device can live up to the heightened expectations.

"If it works really well and does all these things well, I'd have no problem buying one on my own," he said. "That's the question out there right now _ no one knows."