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In the past it could have been done any number of ways because the phone had to be activated through iTunes and if the latest OS wasn't on the phone at delivery it would be installed during activation.
With the iPhone 5, if the latest OS isn't on the phone at delivery then that's going to be a pretty big blow to the whole "cut the cord to the PC" hype.
 
well when the iPhone 4 came out..iOS4 was already installed..I'd assume this would be the same concept..
 
It's magic!
 

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I always thought they loaded the iOS onto the flash memory chips and then shipped them out to another manufacturing facility where the chips would be installed onto the motherboard and all the other pieces would trickle on in. Whatever they do though, it has to be really effective.
 
well the assumption would be the phones are loaded during the manufacturing process with the latest iOS they have, doesnt mean its the latest version the public has, they would not make 7 Million phones than update the iOS then update 7 Million phones

This. The phones are loaded with the most up to date software version they have at time of manufacture, and when you open your shiny new phone it will update to the most current version the first time you connect to a network.
 
Maybe they connect a USB into a super computer that has 7 million plugs on the end of it, plug them into iTunes, and hit "Update All".
 
This. The phones are loaded with the most up to date software version they have at time of manufacture, and when you open your shiny new phone it will update to the most current version the first time you connect to a network.

Except for next gen devices..they're always going to be running the newest unavailable OS. IF they're already in production which i think just started they're loaded with the GM that we'll get when it's announced.
 
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