The iPhone is set to hit the market soon, on June 29th, that's just two days away. The iPhone will be an important landmark in the history of technology, although a lot of people may not realize it now. You see, I don't see the iPhone as a mobile phone or an iPod, although its both. The iPhone is an internet communication device. It'll be to the internet, what the iPod was to digital music. Now many will cite references to the contrary, mostly towards the lack of 3G support. That's true and the first version of the iPhone probably won't be that spectacular, neither was the first version of iPod, but it will definitely get the ball rolling.
Soon there will be an iPhone in everyone's hand and then for the first time, we - the users - will be always connected. This will be followed by the rise of Web 3.0, when services will be created not under the assumption that the user is tied down to a desktop PC, but is on the go. An example of such a "mobile" service is Twitter, which lets you post short messages in your profile, stating what you are doing at that precise moment, so given that you keep your profile updated, your friends can always know exactly where you are and what you are doing. Another example of such a service - which is already rather useful - is Google Maps, which gets a special treatment on the iPhone already, GMaps can be used to find directions or find a good restaurant or store nearby (think of the potential of targeted advertising). The usefulness of such applications will be amplified by many degrees if the iPhone becomes successful.
The iPhone is definitely a great device, but the price may not be within the reach of the demographic that Apple is targeting, although high prices never stopped the iPod from being propelled to the top. Only time will tell, I guess.