THE iPHONE

Following the success of iPod, Apple announced the iPhone in January 2007. The announcement was preceded by rumors and speculations that circulated for several months. The iPhone was introduced, first in the United States on June 29, 2007 with much media frenzy and then in the United Kingdom, Germany and France in November 2007. It was named Time magazine's Invention of the Year in 2007. A new version of Apple's iPhone is expected to be introduced in 2008 that is capable of operating on faster 3G cellular networks.

History

The genesis of the iPhone began with Apple CEO Steve Jobs' direction that Apple engineers investigate touch-screens. At the time he had been considering having Apple work on tablet PCs.
Comments made by Jobs in April 2003 at the "D: All Things Digital" executive conference expressed his belief that tablet PCs and traditional PDAs were not good choices as high-demand markets for Apple to enter, despite many requests made to him that Apple create another PDA. He did believe that cell phones were going to become important devices for portable information access.
On January 9, 2007, Jobs announced the iPhone at the Macworld convention, receiving substantial media attention, and on June 11, 2007 announced at the Apple's Worldwide Developer's Conference that the iPhone would support third-party applications using the Safari engine on the device. Third-parties would create the Web 2.0 applications and users would access them via the Internet. On October 17, 2007 Apple announced that an iPhone software development kit would be made available in February 2008, allowing developers to create native applications that take full advantage of the iPhone's application programming interface.
On July 25, 2007 Apple announced in their 2007 Q3 sales report and conference call that they sold 270,000 iPhones in the first 30 hours on launch weekend. AT&T reported 146,000 iPhones activated in the same time period. Apple anticipated selling their millionth iPhone in the first full quarter of availability, and anticipates selling 10 million iPhones by the end of their 2008 fiscal year. On September 10, 2007, Apple announced sales of 1 million iPhones. This was followed by Apple's 2007 fourth quarter earnings announcement on October 22, 2007 which put total iPhone sales at 1.39 million with 1.12 million sold that quarter.
On November 21, 2007, T-Mobile announced it would sell the phone "unlocked" and without a T-Mobile contract, caused by a preliminary injunction against T-Mobile put in place by their competitor Vodafone. In Germany, a company is not allowed to lock the SIM card to itself. On December 4, 2007, a German court decided to grant T-Mobile exclusive rights to sell the iPhone with the SIM card locked, overturning the temporary injunction. In addition, T-Mobile will unlock the iPhone at the termination of a customer's contract.
The iPhone normally prevents access to its media player and web features unless it has also been activated as a phone with an authorized carrier. On July 3, 2007, Jon Lech Johansen reported on his blog that he had successfully bypassed this requirement and unlocked the iPhone's other features with a combination of custom software and modification of the iTunes binary. He published the software and offsets for others to use.