The iPhone project was started way back in 2002, when the iPod was released. Steve knew that he needed to combine an iPod, a phone, and an "interwebs communication device." Back then, there was barely a data network, and the mobile chips that phones used were slow. Fast forward a few years, the project is a total secret. The hardware people used fake software, and the hardware people developed software in "wooden boxes with chipsets in them." Then Steve had to meet with the wireless companies. He told the president of Cingular(at the time) and told him that he had "a revolutionary device that is light years ahead of any other phone."(Steve's favorite words underlined for convenience). The wireless companies immediately saw what people saw the moment the iPhone came out. They feared that the iPhone would give the hardware companies too much power, and that they would become no more than "data pipes." But this is not exactly what happened, the iPhone has more than tripled data usage used by mobile phones in San Francisco and New York City. On MacWorld, there were only rumors going around, no confirmation. Right before he said "Revolutionary Mobile Phone," only 30 people had seen the device. It is estimated that Apple spend $150 million on research.
Believe it or not, but this is actually similar to what the first iPhone looked like.
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