iPhone rumor from 2002


John Markoff connecting some dots on a rumored Apple phone back in 2002.

Furthermore, the cost of adding phone capabilities to palmtop computers is falling rapidly.

''It's easier and easier for a company like Apple to go to a Taiwanese manufacturer for wireless telephone components,'' said David Carey, chief executive of Portelligent, a technical market research company based in Austin, Tex. He said the parts required for adding advanced cellular capabilities to a device now cost as little as $50.

Of course, that is why Mr. Jobs's greatest challenge with an iPhone might be elbowing his way into a crowded marketplace, where other companies already have supplier and manufacturing relationships in place.

''There's no question that Apple could design a cool phone,'' said Andy Neff, a Bear, Stearns analyst in New York. ''The key is being able to build an infrastructure.''

The infrastructure that Apple assembled to support its yearly cycle manufacturing is likely as important a product than the iPhone itself.