The genesis of the iPhone began with Apple CEO Steve Jobs' direction that Apple engineers investigate touch-screens. At the time he had been considering having Apple work on tablet PCs.[6] Apple created the device during a secretive and unprecedented collaboration with AT&T—Cingular wireless at the time of the phone's inception—at a development cost of USD$150 million by one estimate. They rejected an early "design by committee" built with Motorola in favor of engineering a custom operating system and interface and building custom hardware.[7]
Comments made by Jobs in April 2003 at the "D: All Things Digital" executive conference expressed his belief that tablet PCs and traditional PDAs were not good choices as high-demand markets for Apple to enter, despite many requests made to him that Apple create another PDA. He did believe that cell phones were going to become important devices for portable information access.
On January 9, 2007, Jobs announced the iPhone at the Macworld convention, receiving substantial media attention,[8] and on June 11, 2007 announced at the Apple's Worldwide Developer's Conference that the iPhone would support web applications using the Safari engine on the device. Third-parties would create the web applications and users would access them via the Internet.[9] On October 17, 2007 Apple announced that an iPhone software development kit would be made available in February 2008[10][11], allowing developers to create native applications that take full advantage of the iPhone's application programming interface.[12]
On July 25, 2007 Apple announced in their 2007 Q3 sales report and conference call that they sold 270,000 iPhones in the first 30 hours on launch weekend.[13] AT&T reported 146,000 iPhones activated in the same time period.[14] Apple anticipated selling their millionth iPhone in the first full quarter of availability,[15] and anticipates selling 10 million iPhones by the end of their 2008 fiscal year.[16] On September 10, 2007, Apple announced sales of 1 million iPhones.[17] This was followed by Apple's 2007 fourth quarter earnings announcement on October 22, 2007 which put total iPhone sales at 1.39 million with 1.12 million sold that quarter.[18]
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