Unavoidable?
This is probably what has happened:
- The rumor mills, analysts, pundits and wall street players all attached Apples phone project to the name 'iPhone' very early on.
- Multiple news stories ran that more or less grew the legend of this phone beyond all reason, to the point where various analysts were saying that Apple HAD to announce this phone at MacWorld. How exactly that fever pitch built and why analysts were saying it was so important - who knows?
- Apple marketing recognized that it was important to announce the phone at MacWorld, and Steve did too. Problem - Cisco owns the name in the US. Marketing would insist that Apple had to use the iPhone name, because all of the free press before and after MacWorld would have to remain consistent to the name, or there was a danger of people thinking Ciscos POS was the 'iPhone' that everyone was waiting for.
- Steve basically decided that since they were only announcing the phone now, they could call it iPhone and try to negotiate with Cisco. In the meantime all of the press would continue to call the device the 'iPhone' and Apple could try to get the name.
- If negotations with Cisco fell through (which Apple probably already knew they would) the worst case scenario would be that Apple would be legally required to change the name. This ruling of course would come long after all of the press hype had evaporated.
- Once the name is changed, Apple will get all kinds of free press a few months down the road announcing the name change much closer to the launch. More free press.
So - did Apple predict that this would happen? Probably. In fact, they probably wanted it to. What do you want to bet that the negotiations with Cisco went something like this:
Apple: Hi! You guys suck! Give us the iPhone name!
Cisco: Huh? I thought you guys wanted to negotate in good faith?
Apple: Did your mommy dress you this morning?
Cisco: Whats going on here? Why are you being like this?
Apple: Give us the iPhone name you unkempt malcontents!!
Cisco: See you in court.
Apple:

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