Q: IOS 10 PROBLEM

Correct.
May take longer due to lots of people downloading.

CJ.

I succeded to update Itunes to the latest version. But my Iphone is still telling me to connect to itunes. What will I do now?

Same here. No connection with my bricked iPhone to iTunes 12.5.1... ***!

Connect the iPhone to itunes, itunes should come up and say the phone has a problem and needs to be restored. It will ask to restore or update, tell it to update. It will download the latest iOS version 10.0.1 and install it, it will take a while to download the update.

I can`t even see my Iphone at Itunes so I can`t do anything. It`s like my Itunes can`t feel the Iphone.

Same here :-(

Can you try a different usb port? Or do you have access to another computer?

In my case it helped to reinstall iTunes... then it detected the iPhone.

Now iTunes is downloading this 2,31 GB iPhone Software to my PC. I keep fingers crossed that I can finish the iOS update and don't have to do a restore. 

I was finally able to complete the update (without restore), after 4 hours and numerous failures and strange alerts. I just kept trying and suddenly the update startet und finished successfully.

That was not cool, Apple. At least it finally worked. 

I Have never done an OTA update and I have never had a problem updating my phones. I've been in sing iTunes to update my devices since I first got an iPhine 3G and I have always been lucky I guess to have smooth updates. I know Appke would like it s to use OTA updates and backup to iCloud but I always feel better knowing I am backed up locally and don't risk the issues that seem to keep popping up with OTA updates.