You consider 100 off the low end version of the phone to be a "firesale?" I'm sure they didn't sell quite as many as they had hoped but as evidenced by the fact that they haven't sold the iPhone in all the countries yet they wanted to see how much of an impact 2.5G vs 3G would make. So they got their market research and made a pretty big chunk of change in the process.
they found out absolutely nothing about the difference 3g would make. what they did was anger the operators they're supposed to "co-operate" with and made it more difficult to negotiate with the operators they're hoping to co-operate with, leading into less favorable terms in the future.
There are two camps in terms of releasing a product before it's perfect. It's not like the iPhone is complete junk. I'm sure there are a lot of arguments against it but it's still in the press and then when Apple releases iPhone 2.0 they can say "hey, look, all those things you were complaining about, you've got them." I think it would take more than a non-3G enabled iPhone to ruin the image of Apple. It's still the best all-in-one portable experience on the planet. (I haven't spoken with the Martians so I can't comment on their technology)
if you thing iphone 2.0 is "perfect" and with all the features preventing sales of v1.0, i've got a bridge to sell to you. the competitors are not sitting on their hands and are releasing at space far greater than 1/year.
As far the hype - that wasn't Apple's fault. That's all about the media, Apple didn't create the hype, Apple didn't go around saying we sold 15 million in 3 hours, it was the media. Again, the media likes to take things and blow them out of proportion (like nobody has ever heard that before).
yeah right apple didn't create any hype
Of course the silence from Apple didn't help the hype but that's standard Apple, that's what they do. But still, the insane estimates of sales never came from Apple so saying it didn't live up to the hype is like saying Star Wars didn't gross 600 million domestic (Ep III)so it didn't live up to the hype either...
you obviously had difficulties to understand my statement earlier, so let me clarify it:
1) in europe, the iphone sales have been far belove the expectations of every party involved, including apple, as evidences by the sale
2) in the us, the iphone sales have been in the low end of apple's expectations, and nowhere near the numbers the hype has lead the general public, analysts, enthusiasts etc (=other than apple) to expect.