Here is how it works:
You order a phone. It immediately goes to "back-order" since there is not one allotted for you.
Once we say "LeeNH needs a phone, and we have one for them" you are given the rights to that phone.
When it is time to ship you a phone, your credit card is billed, and if it kicks back a good code, your phone is then scanned into apple's DB, it is assigned a UPS shipper.
Now, for the people sitting on backorder:1
If LeeNH's credit card is declined, that phone is removed from their allotment and given to the next person in line.
Also, new phones are being introduced to the back order pool every hour.. So those numbers will slowly begin to populate from back orderd to fulfilled.