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They may have reached a private agreement with Cisco or plan to take them on legally for rights. Or there might be some sort of loophole. Or they just might be squatting with the intention of tying Cisco up in court? ;)
 
Cisco has said that an agreement should be finalized soon allowing Apple to use the name.

I haven't seen anything to that effect released, and I work with Cisco's VOIP stuff all the time...

Unless apple is paying through the nose for the name, it's not to their benefit to let apple use it, as they already have a product out bearing the iPhone name.
 
Apple may end up paying a lot for the 'iPhone' name, or we may find that the name is changed by the time the device is released!
 
Considering Apple expects to make >$5 Billion dollars in revenue from this thing ($500 x 10 million phones + whatever Cingular is kicking back to them for the contracts + ...), I presume that giving Cisco $100M+ for the name isn't out of the question.

B
 
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