Small chips, scratches found on some new iPhones

PALO ALTO, Calif. (KGO) -- The new iPhone 5 seems poised to set record sales, with more than $10 million expected to be sold by the end of the month. But on Saturday, some of the shine has been taken off the phone. After waiting in long lines, there's some big disappointment.

Sales are still brisk at the Palo Alto Apple store on University Avenue. New iPhone 5 owners are not shy about showing off their new buy. There are some like Robert Perez who found a tiny chip on the body of his brand new phone just after he left the store, "That's no problem," Perez said. "That will wear out."

On Friday, one customer was quickly whisked into the store by an Apple employee after he showed an ABC7 News camera a tiny chip on his phone. The employee was heard saying they will take care of the problem.

Whatever problems the iPhone may have, seems not to matter to Apple lovers. Verizon and AT&T phones were sold out in Palo Alto, so resident Asha Jadeja says she's set to switch carriers just to get the phone, "We still want an iPhone, so we're going to go buy a phone from Sprint. We're that into it."

Kit Yarrow is a consumer psychologist with Golden Gate University. She says people will overlook iPhone flaws due to the aura left behind by Apple's founder, "I think the magic surrounding Steve Jobs sort of left us unable to focus on the negative aspects of the iPhone."

Samsung is trying to make that magic disappear. A recent spate of ads shows Galaxy phone owners using technology Apple doesn't have. It shows a young man waiting in line apparently to buy an iPhone. He's seen using a Samsung phone and is only in line so his parents can buy a phone. Suggesting Galaxy is for the younger set.

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