I helped cover IT hardware companies including Apple at a bulge-bracket investment bank. Not just Nokia, but the entire phone industry was caught flatfooted by iPhone as willvarfar and anonu said, despite rumors going around the industry. (The joke slide in Jobs' announcement presentation showing an iPod with phone dial was not too far off what we and most people expected.)

Thoughts on the presentation:

* "There is not much coolness left for Motorola" - The day of the announcement, I saw a press release from Motorola come across the wire, in which the company announced yet another phone with a keyboard. I felt pity for the unfortunate souls who had designed it, worked on its launch, and wrote the copy for the press release, and who now had to see their efforts fly into Hurricane iPhone.

* Predictions of lower-priced iPhones - Average iPhone prices of course rose, as opposed to falling. As JSR_FDED said, Apple has always played upmarket. I heard Apple's CFO say at a Citigroup-hosted investor conference that his company could release a $799 computer "but we don't want to".

(That said, it is quite possible to find deals, at least in the US. I got my iPhone 13 by agreeing to pay $200 over 30 months on top of my already super-cheap T-Mobile plan. The iPhone before that, I bought carrier refurbished for $100 from Sprint.)

And of course, there never was an iPhone mini with a fundamentally different UI. Despite the repeated commitment to improving on UI, etc., I guess it would have been too much to ask a company like Nokia, the king of releasing a new model with new UI and new form factor weekly, to imagine that another company would just not play the infinite-SKU game. (Conversely, it's not hard to imagine that had Apple entered the phone market in the 1990s during the years of endless indistinguishable Performa models, it might have tried to play along.)

* The MVNO mention is regarding rumors of Apple launching its phone in conjunction with an MVNO. We thought this was quite possible, but it was based on Apple having the credibility to immediately have millions of customers switch to it as their carrier, and not because Apple—of all companies—could not get whatever it wanted from carriers.

* Third-party app support - Most have forgotten that Apple really did expect webapps to be the app experience for iPhone's first year. But even that would have been an improvement over what things was like before iPhone. I speak as one who purchased my share of Palm apps. $20 was the norm for, say, DateBk6 (which, by the way, has at least one function that MacOS's Calendar just got with Sequoia).

* "Expect RIM and Palm to suffer" - I never liked using my company-issued Blackberries. I didn't leave Palm until 3GS in 2009; besides DateBk6, I also liked being able to tether my computer to my Palm Treo 700p.

* I'm pretty sure there was no sharing of data revenue or iTunes revenue. Apple got what it wanted from Cingular/AT&T regarding marketing and in-store push without having to preload bloatware or the carrier's brand name all over the device/packaging, and the carrier got the exclusive of the decade. Remember, Deutsche Telekom deciding to sell T-Mobile in 2011 was directly because it didn't have iPhone (so that tells you how the repeated mention in the presentation of T-Mobile turned out).