Everyone assumes that Apple was ready to go to market and was caught by surprise by Cisco.
I disagree.
It seems, of late, that Apple is the one not ready to go to market. Many months ago Apple announces the iTV, but says it is months away from being able to deliver -- then changes the name to AppleTV.
Now Jobs announces the iPhone, but states that it won't really hit the market until summer.
Sounds to me like Apple jumped the gun because they had nothing else to introduce in January.
Frankly, I'm not a big fan of the iPhone. It looks great, and is certainly a better phone than the other high-end phones out there -- but does it really do anything new? Can't you send e-mail while on the phone now? (I do it all day long.) Can't you surf the net while on the phone, or listen to tunes? (I'll admit that multitouch is great, but it could have been introduced in the next gen of iPods just as easily.)
In the end, Cisco and Apple will settle and Apple will get their one percent of the phone market. Yippee.
I can send e-mail on my Treo, but the e-mail client on it stinks. The third party Palm app Chatteremail is somewhat better, but not by much. And I can browse the web on my Treo too, but only with the Blazer browser, which is terrible (or I can use the Opera Mini browser which forces my Treo to reset after a couple of minutes).
And I can listen to music on my Treo, but the music players for it are pretty mediocre, and none of them have anything close to the navigation interface that the iPhone does.
I think that Jobs' explanation for why they introduced the iPhone now makes sense. They have to get FCC approval, and if they waited, the iPhone stuff would leak out in FCC documents instead. It's a lot better for Apple to control the unveiling of the product and be the one showing what it is and what it does.