Angry bloggers and tweeters complained that they had been late for work, and were risking missing planes and trains.
Apple has acknowledged the problem and says it will be fixed by 3 January.
The reason has not been given but the glitch appears to affect single alarm settings on the Iphone 4 and earlier models with software updates.
A similar problem hit the iPhone alarm when the clocks went back in November, again causing many users to be late for work or for transport arrangements.
"We're aware of an issue related to non-repeating alarms set for January 1 or 2," Apple spokeswoman Natalie Harrison said in a statement quoted by Macworld.
"Customers can set recurring alarms for those dates and all alarms will work properly beginning January 3."
More than 1.7m people around the world had bought iPhone 4 handsets by June 2010, in what was the company's most successful product launch.
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