The Untold Story: How the iPhone Blew Up the Wireless Industry Wired in a surprisingly detailed overview of the iPhone development.
To ensure the iPhone's tiny antenna could do its job effectively, Apple spent millions buying and assembling special robot-equipped testing rooms. To make sure the iPhone didn't generate too much radiation, Apple built models of human heads — complete with goo to simulate brain density — and measured the effects. To predict the iPhone's performance on a network, Apple engineers bought nearly a dozen server-sized radio-frequency simulators for millions of dollars apiece. Even Apple's experience designing screens for iPods didn't help the company design the iPhone screen, as Jobs discovered while toting a prototype in his pocket: To minimize scratching, the touchscreen needed to be made of glass, not hard plastic like on the iPod. One insider estimates that Apple spent roughly $150 million building the iPhone.
It's this level of dedication that sets Apple apart – now if only they officially released it here in Australia...