January 9, 2007, San Francisco, Macworld Conference.
Steve Jobs walked onto the stage and said:
“Today, Apple is going to introduce three revolutionary products.”
“The first, is a widescreen iPod with touch controls.”
“The second, is a revolutionary mobile phone.”
“And the third, is a breakthrough Internet communications device.”
“An iPod, a phone, and an Internet communications device…”
“These are not three devices. This is one device.”
He pulled an iPhone from his pocket.
The audience went wild.
The Phone Dilemma#
To understand why the iPhone was revolutionary, first understand phones before 2007.
At the time, there were two types of phones:
Feature phones: Like Nokia and Motorola. Could make calls, send texts, play simple games. Small screens, large keyboards, terrible web browsing experience.
Smartphones: Like BlackBerry and Windows Mobile. Had complete operating systems, could install apps. But complex interfaces, required styluses or physical keyboards.
Both types shared a common problem: Terrible web browsing experience.
Web pages were compressed for small screens, text was hard to read, images distorted. Typing URLs required pressing keys letter by letter.
Jobs thought: Could we make a phone with good web browsing?
iPhone’s Design#
The iPhone had several revolutionary features:
Full touch screen
The iPhone had no physical keyboard; the entire front was a 3.5-inch touch screen. This was crazy at the time—people were used to tactile feedback from physical keyboards.
But Jobs insisted: Keyboards take up space, and different apps need different keyboards. Virtual keyboards can change at any time, more flexible.
Multi-touch
The iPhone supported multi-touch: could recognize multiple touch points, supporting pinch-to-zoom and swipe-to-scroll.
This made browsing natural: scroll with a finger, zoom with two fingers.
Complete web browser
The iPhone had Safari browser built in, could display complete web pages, not WAP simplified versions.
When Jobs demonstrated, he visited the New York Times website. The page displayed completely, could zoom and scroll. The audience was stunned.
Sensors
The iPhone had an accelerometer (detect orientation), proximity sensor (turn off screen during calls), and light sensor (automatically adjust brightness).
These sensors made the iPhone “smart”—knowing its own state.
The Birth of App Store#
When the iPhone launched, it didn’t support third-party apps. Jobs thought web apps were enough.
But developers strongly demanded it. In 2008, Apple launched the App Store—an app distribution platform.
App Store changed the game:
- Developers could reach hundreds of millions of users
- Users could easily discover and install apps
- Apple took a 30% cut from every transaction
App Store created an entirely new ecosystem. Developers could make money from apps; users could get rich apps.
By 2024, App Store had over 2 million apps and over 100 billion cumulative downloads.
The Mobile Internet Explosion#
The iPhone’s success opened the mobile internet era.
User behavior changed
People started using phones to browse the web, watch videos, play games, socialize. The phone became the most important computing device.
New apps emerged
- Instagram: Launched 2010, photo sharing app
- WhatsApp: Launched 2009, instant messaging app
- Uber: Launched 2009, ride-hailing app
- WeChat: Launched 2011, China’s largest social app
These apps could only be born in the mobile internet era.
New business models
- Mobile payments: Alipay and WeChat Pay changed payment methods
- Sharing economy: Uber and Airbnb rely on mobile location
- Short videos: TikTok and Kuaishou became mainstream media
Competitors#
The iPhone wasn’t the only smartphone.
Android: In 2005, Google acquired Android Inc. In 2008, the first Android phone was released. Android was open source; any manufacturer could use it. Samsung, HTC, Motorola, and others launched Android phones.
Windows Phone: Microsoft released in 2010, but market share remained small; development stopped in 2017.
BlackBerry: Once the enterprise phone hegemon, but refused to transform; market share plummeted.
By 2024, the smartphone market was divided between iOS and Android. iOS about 28%, Android about 71%.
The Impact of Mobile Internet#
Mobile internet changed society:
Information access: People get news, knowledge, and entertainment through phones. Traditional media declined.
Social interaction: WeChat, Facebook, and Instagram became main social platforms. Face-to-face communication decreased.
Shopping and consumption: Mobile commerce, food delivery, and ride-hailing changed consumption patterns.
Work: Mobile office and remote collaboration became possible.
Privacy and security: Phones collect massive personal data; privacy issues emerged.
Smartphones Today#
Today’s smartphones are much more powerful than the first iPhone:
- Screen: Over 6 inches, OLED technology, high refresh rate
- Processor: Hundreds of times faster than first iPhone
- Camera: Multiple lenses, night mode, 4K video
- Network: 5G, high-speed mobile network
- Biometrics: Fingerprint and facial recognition
- AI capabilities: Voice assistants, smart photography
Smartphones have become humans’ most intimate devices. People look at phones 4-5 hours per day on average, some even more.
Next Step: Android’s Rise#
The iPhone created the smartphone era, but Android made smartphones accessible to everyone.
Android is open source; any manufacturer can use it. This led to Android phones ranging from a few hundred to several thousand dollars, covering all markets.
Tomorrow, we’ll discuss Android’s story.
Today’s Key Concepts#
Mobile Internet Accessing the internet through mobile devices (mainly smartphones). Mobile internet lets users be online anytime, anywhere, spawning new apps and business models.
Multi-touch Touchscreen technology that can recognize multiple touch points simultaneously. Supports gestures like pinch-to-zoom and swipe-to-scroll. The iPhone was the first mass-market multi-touch phone.
App Store App distribution platform. Developers upload apps; users download and purchase; platform takes a commission. App Store created the mobile app ecosystem.
Discussion Questions#
- When the iPhone launched, many questioned how to type without a physical keyboard. Why do you think Jobs insisted on removing the physical keyboard?
- Mobile internet changed people’s lifestyles. Do you think this change is more good or more bad?
Tomorrow’s Preview: Android’s Rise—how did an open-source system make smartphones accessible to everyone?