Here are some pictures of Jobs showing off the iPhone:
Wow ! I must say...wow ! This seems like the next must-have gadget ! Well, it's priced at $499 for the basic (4GB version) and $599 for the upper end one(8GB). Here's Jobs' reasoning:
"Our most popular iPod is $199 -- what's a smartphone cost? Somewhere around $299 with a two year contract."
"What should we charge for the iPhone? We should charge more for this stuff!... "
"So how much more than $499 should we price it? We thought long and hard about it... it does so much stuff..."
"What should we price it at? For a 4GB model we're pricing it at $499 -- no premium whatsoever.
"We're going to have an 8GB model for just $599."
Well, here's an early commercial that was released in March 2006...that gives us some ideas on this phone...
Original link via PajamasMedia.
Update: ArsTechnica article on why the iPhone won't be the next "killer app" for Apple.
Update 2 : Cisco sues Apple for trademark infringement...they have a trademark on the iPhone name. I was wondering what happened to the Cisco trademark, after Apple announced their product. They had released a web-phone/skype phone late in December.