While the iPhone has some innovative ideas (I like the 3d effects, I like the auto screen off when you put it up to your ear, I like the auto rotation)... it is mostly hype. I do not believe a device without a keyboard will be a success with users, at least the kind of users willing to spend $500-$600 on a smartphone, as the lack of tactile feedback while typing will introduce massive usability issues. Also, it lacks other key smartphone features, such as the ability to view and edit Office docs, and no support for exchange activesync or a blackberry client. Now all of this is fine as long as the device is a consumer device. But the problem is the iPhone does not have a consumer pricepoint or a consumer form factor. So now what? Ahh yes. The price drops about a year out, then it drops further. And more features are added. But wait. What happened to Motorola when the RAZR's price dropped? They stopped making money on it. Yet Apple has more hubris than a Motorola, so the price wouldn't drop as much. But then how are they going to get market share without dropping prices? You see the conundrum? Think about it: this thing is $500 without 3G. What happens when you add EVDO and UMTS into the mix? (You are not going to sell into Europe without UMTS. And BTW, CDMA licensing fees are MORE EXPENSIVE than GSM, so how do you make the Verizon version cheaper??) At this point, the iPhone is a product running on vapors. Most people do not even know what the day-to-day experience will be like, what the reception will be like, how many bugs it will have, how easy it will be to type on flat glass, what happens if a phone call interrputs your music...is it handled gracefully? Does it still work if you drop it? What if that big ol' glass screen cracks or warps under heat? How greasy does the screen get after a week? What will the battery life be like when browsing the web with Wi-fi, listening to music, and talking on the phone, near simultaneously? (60 minutes That's my guess) Anyone? Anyone?? Oh, that's right. No one has used it yet, so we don't know. (Mossberg and Pogue don't count..they only had it for a couple minutes) Another thing. How many Blackberry or Palm patents do you think they're violating with this thing? If you think Cisco was bad, just wait; I can guarantee you that half of what is being done on the iPhone has been done before! I bet the lawyers are salivating and having dreams at night about this thing. Let me tell you, making a smartphone is SIGNIFICANTLY harder than making an iPod. The iPod software could be written by a computer science student as a senior project. But smartphones run advanced OS's that need to handle multiple unrelated functions, (phone call / play music / connect to wi-fi / connect to cellular network / web browser / email client / advanced memory and process management / windowing system and UI management). Apple has been working on this for years (probably 4 years, which is significantly longer than Blackberry has spent on any product, for example) and has probably learned all this the long and hard way, but they are going to learn even more once the bugs from users start coming in, and the carriers start demanding that they fix bugs! Welcome to the game, guys. Take a seat next to Mr. Palm and Mr. RIMM. May the best man win. P.S. All that being said, I am a happy new Mac switcher with a white Macbook self-upgraded to 2 GB of RAM hooked up to a nice Gateway 24" monitor. I'm looking forward to Leopard. I might even get the iPhone if the initial reviews turn out alright and there are no major bugs! I love gadgets.