it gave people the sense of what they got when they first saw the internet. it was like a magic trick. >> look how beautiful and small it is. >> apple makes it seamless, makes it feel good, makes you feel cool, and that's what this thing is. you can get everything this thing does already, probably for less money, but apple has made it hot. >> it quickly became the category killer for phones. >> 700,000 iphones were sold just in the first week. now, you may think spending 500 or 600 bucks on a cell phone slash ipod is crazy. >> $500? fully subsidized with a plan? i said that is the most expensive phone in the world and it doesn't appeal to business customers because it doesn't have a keyboard. >> microsoft thought the iphone was stupid. they didn't get it. they weren't google. >> the internet is abuzz with word google is looking to expand into the cell phone business. >> you guys may have heard also