People look at the latest iPods at the Apple store April 19, 2005 in New York City.


Apple had by no means constructed something so complicated. But it was at a crossroads.

“We were like, people are only going to carry one device. They’re going to have a cell phone with music, or they’re going to have an Apple product with music and communications,” mentioned Tony Fadell, the former Apple govt who co-created the iPod and helped lead the iPhone’s early growth. “And it was like, ‘Okay, what are we going to make?’”

Fadell and different Apple executives watched as Motorola and Samsung launched new cellphones with built-in MP3 gamers. They questioned whether or not the iPod’s days have been numbered.

People look at the latest iPods at the Apple store April 19, 2005 in New York City.

The iPod was Apple’s biggest product at the time. By April 2004, the iPod was outselling the Mac and rising by greater than 900% from the 12 months earlier than.

So Apple set to work making its biggest success out of date. To at the present time – the firm’s fiftieth anniversary – Apple has by no means made a extra consequential resolution.

Apple had by no means made a product as difficult as the iPhone, which meant determining find out how to make parts work collectively in methods they hadn’t earlier than, Fadell mentioned.

Rubén Caballero, Apple’s vp of engineering from 2005 till 2019, remembers working lengthy nights and weekends in the roughly two and a half years main as much as the first iPhone’s launch.

People check out the new iPhone on display at MacWorld on January 10, 2007 in San Francisco, California.
A man uses an Apple iPhone outside the Apple store on Regent Street on device's UK launch day, November 9, 2007 in London, England.

“I slept, many times, under my desk,” he mentioned.

Among the biggest uncertainties was the interface. While contact screens existed lengthy earlier than the iPhone, Apple refined the know-how and constructed software program that labored easily sufficient to persuade customers it was price ditching bodily buttons. That took lots of of individuals inside Apple laboring over technical particulars like the display’s lamination and moisture rejection, in line with a former Apple engineering chief.

Sarah Meyers holds the new Apple iPhone June 29, 2007 in San Francisco, California.
A poster of the new Apple iPhone hangs in an Apple store June 29, 2007 in San Francisco, California.

The first iteration appeared like an iPod that might make telephone calls, in line with Fadell, Caballero and Andy Grignon, a former Apple senior supervisor who labored on the first iPhone. It even had the iPod’s click on wheel.

“So we tried to make iPod plus phones, and those were failures,” mentioned Fadell. “Because the click wheel wouldn’t allow us to text, wouldn’t allow us to dial a phone number.”

But {hardware} was only one aspect of the story.

“Every app had to be rewritten from scratch,” mentioned Grignon. “You had now introduced a new way to interact with these apps with your fingers. Nothing was stable from the ground up, and so when it crashed, you’re like, ‘What, how?’”

The iPod’s success kickstarted Apple’s shift into moveable shopper electronics in the early 2000s. Before the iPod, a lot of the firm’s product lineup consisted of laptops and desktops.

That transition required Apple to basically begin from scratch, working with new suppliers and producers whereas constructing new groups. The firm merely didn’t have the know-how to construct a tool like the iPod, remembers Fadell.

Apple CEO Steve Jobs looks out over the crowd as a new television commercial for Apple iPod digital music is displayed behind him, at the 2004 Macworld Conference and Expo in San Francisco, January 6, 2004.

The iPod’s success taught Apple a factor or two about staying forward of the competitors – a significant lesson in the extremely aggressive smartphone race forward.

Fadell mentioned he pushed for a brand new iPod launch in time for Christmas yearly , which helped set the tone for the iPhone’s launch cycle.

The former senior member of Apple’s engineering staff described the “relentless grind” of pushing out iPods.

The recognition of gadgets like the T-Mobile Sidekick and BlackBerry 5810 in the early 2000s signaled that buyers wished their telephones to do greater than make calls, textual content and snap photographs. They wished to take their on-line lives with them.

Michelle Zorich's iPhone captures a song as she uses her computer at a Starbucks October 2, 2007 in Miami Beach, Florida.

But coming into the telephone enterprise was a frightening job again then, even for Apple. Nokia and Motorola dominated the market. Carriers held tight management over advertising and marketing and distribution. And at $500, the first iPhone was considerably costlier than your common telephone.

“If you talk to pretty much anybody, you’ll find that there’s a common theme of: ‘Did you know the phone was going to be as big of a deal as it is?’ And the answer is none of us did,” mentioned Grignon, who mentioned the telephone was anticipated to be a “higher-tier luxury product.”

The former senior engineering supervisor described these inside Apple as being “pretty surprised” by the market’s response to the first mannequin.

Dale Larson talks on his cellular telephone while waiting in line before the initial sale of the Apple iPhone in San Francisco, California June 29, 2007.
New iPhone owners exit Apple's flagship store on Fifth Avenue on June 29, 2007 in New York City.
The first customer in line holds up his new Apple iPhone after purchasing it at an Apple store June 29, 2007 in San Francisco, California.

Today, the iPhone is amongst the world’s hottest smartphones, and there are greater than 2.5 billion Apple gadgets in use globally. It’s essentially reshaped tradition, as NCS’s Bill Weir explores in “50 Years of Apple,” a particular report for The Whole Story with Anderson Cooper premiering on April 4.

Even Grignon is surprised at how ubiquitous the iPhone has develop into.

“My son, right now he’s about to graduate high school, and he cannot get through his morning routine without his phone,” he mentioned.

That success has spawned a complete ecosystem of merchandise like the Apple Watch and AirPods, all hinging on the iPhone’s recognition. It’s the system that can seemingly outline Apple’s legacy in the long run, says Caballero.

A woman takes a selfie with iPhones inside the Apple store in Beijing's Sanlitun area as the new iPhone 17 series smartphones go on sale in Beijing, China, on September 19, 2025.

“It’s that moment in history that people remember,” he mentioned.

The proven fact that the iPhone hasn’t considerably modified over its practically 20-year existence is proof of its success, says Fadell.

But he additionally believes the business is in one other “existential moment” due to AI, and Apple’s future might rely on how it adapts. Apple has been perceived to be behind corporations like Google and OpenAI – which it’s struck partnerships with – in AI.

“Apple has to think differently than it did (over the last) 10 to 15 years,” Fadell mentioned. “It has to think about revolutionizing again.”

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