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2000s
Development of an Apple smartphone began in 2004, when the company started to gather a team of 1,000 employees led by hardware engineer Tony Fadell, software engineer Scott Forstall, and design officer Jony Ive,[1] to work on the highly confidential "Project Purple".[2][3] Then Apple CEO Steve Jobs steered the original focus away from a tablet (which was later revisited in the form of the iPad) towards a phone.[4] Apple created the device during a secretive collaboration with Cingular Wireless (later renamed AT&T Mobility) at an estimated development cost of US$150 million over thirty months.[5] According to Jobs in 1998, the "i" word in "iMac" (and thereafter "iPod", "iPhone" and "iPad") stands for internet, individual, instruct, inform, and inspire.[6][7] Apple rejected the "design by committee" approach that had yielded the Motorola ROKR E1, a largely unsuccessful "iTunes phone" made in collaboration with Motorola. Among other deficiencies, the ROKR E1's firmware limited storage to only 100 iTunes songs to avoid competing with Apple's iPod nano.[8][9] Cingular gave Apple the liberty to develop the iPhone's hardware and software in-house, a rare practice at the time,[10][11] and paid Apple a fraction of its monthly service revenue (until the iPhone 3G),[12] in exchange for four years of exclusive U.S. sales, until 2011.[13] Jobs unveiled the first-generation iPhone to the public on January 9, 2007, at the Macworld 2007 convention at the Moscone Center in San Francisco.[14] The iPhone incorporated a 3.5-inch multi-touch display with few hardware buttons, and ran the iPhone OS operating system with a touch-friendly interface, then marketed as a version of Mac OS X.[15] It was the first mobile phone to use multi-touch technology.[16] The device launched on June 29, 2007, at a starting price of US$499 in the United States, and required a two-year contract with AT&T.[17] The price was reduced by a third after two months. The resulting complaints forced Jobs to issue an apology and offer a partial rebate to early purchasers of the Phone.
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