Suprise Ending to ‘iPhone’ Rumors as Linksys Beats Apple to the Punch

By NewsFactor Network | December 18, 2006

With interest in a phone from Apple running at a fever pitch, and with rumors flying that such a product release might happen soon, the iPhone was introduced today — but not by Apple.

The new VoIP-friendly iPhone line from Linksys, a division of Cisco, has no connection with Apple, although there might be some confusion among consumers associating “iPhone” with the well-known iPod and iTunes brands. Apple fans are still left waiting for the final word from Steve Jobs.

“There has been a lot of talk about an Apple phone, but at this point the company may well want to play off of the iPod name, just like there was no change when they introduced the video iPod,” said Adam Engst, editor of TidBITS, a newsletter focusing on Macintosh technology.

Engst suggested that “iPod phone” would be a more likely moniker for an Apple handset, especially because Linksys now has an iPhone on the market.

Hype vs. Reality

Engst said today’s iPhone announcement might indicate that Linksys is trying to get the jump on Apple before a major splash is made at next month’s MacWorld conference. But even if that is the case, he added, it is more likely that Apple will introduce a cellular phone rather than a VoIP handset.

“A VoIP phone requires a special networking setup, and operates on the less-reliable Wi-Fi wireless systems,” said Engst. “A cell phone, though, could be customized by manufacturers and carriers. But those types of companies are known to drive a hard bargain, so it’s not a sure thing that Apple will deliver a phone, even if their fans are clamoring for such a product.”

According to published reports, Cisco has owned the rights to the iPhone name for many years, due to the acquisition of Infogear in 2000. At the Consumer Electronics Show in 1997,…

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