The Apple iPhone features a virtual QWERTY keyboard.

Still, the interface and keyboard have a long way to go to achieve greatness. For starters, when typing an e-mail or text message the keyboard is displayed only when you hold the iPhone vertically. As a result, we could only type comfortably with one finger, which cut down on our typing speed. Using two hands is possible, but we found it pretty crowded to type with both thumbs while holding the iPhone at the same time. What's more, basic punctuation such as periods or commas lives in a secondary keyboard--annoying. If you're a frequent texter or an e-mail maven, we suggest a test-drive first.

We also found it somewhat tedious to scroll through long lists, such as the phone book or music playlists. Flicking your finger in an up or down motion will move you partway through a list, but you can't move directly to the bottom or top by swiping and holding your finger. On the other hand, the letters of the alphabet are displayed on the right side of the screen. By pressing a letter you can go directly to any songs or contacts beginning with that letter. But the lack of buttons requires a lot of tapping to move about the interface. For example, the Talk and End buttons are only displayed when the phone is in call mode. And since there are no dedicated Talk and End buttons, you must use a few taps to find these features. That also means you cannot just start dialing a number; you must open the dialpad first, which adds clicks to the process. The same goes for the music player: since there are no external buttons, you must call up the player interface to control your tunes. For some people, the switching back and forth may be a nonissue. But for mutlitaskers, it can grow wearisome.

Criticisms aside, the iPhone display is remarkable for its multitouch technology, which allows you to move your finger in a variety of ways to manipulate what's on the screen. When in a message, you can magnify the text by pressing and holding over a selected area. And as long as you don't lift your finger, you can move your "magnifying glass" around the text. You can zoom in by pinching your fingers apart; to zoom out you just do the opposite. In the Web browser, you can move around the Web page by sliding your finger, or you can zoom in by a double tap. And when looking at your message list, you can delete items by swiping your finger from left to right across the message. At that point, a Delete button will appear.

Thanks to the handset's accelerometer (a fancy word for motion sensor), the iPhone's display orientation will adjust automatically when you flip the iPhone on its side while using the music and video players and the Internet browser. Also, a proximity sensor turns off the display automatically when you lift the iPhone to your ear for a conversation. All three are very cool.

Exterior features
The iPhone's only hardware menu button is set directly below the display. It takes you instantly back to the home screen no matter what application you're using. The single button is nice to have, since it saves you a series of menu taps if you're buried in a secondary menu. On the top of the iPhone is a multifunction button for controlling calls and the phone's power. If a call comes in at an inopportune time, just press the button once to silence the ringer, or press it twice to send the call to voice mail. Otherwise, you can use this top control to put the phone asleep and wake it up again. You can turn the iPhone off by pressing and holding the button.

The Apple iPhone speakers are located at the bottom of the phone.

Located on the left spine are a volume rocker and a nifty ringer mute switch, something all cell phones should have and which is a popular feature of Palm Treos. On the bottom end, you'll find a pair of speakers and the jack for the syncing dock and the charger cord. Unfortunately, the headset jack on the top end is deeply recessed, which means you will need an adapter for any headphones with a chubby plug. Is this customer-friendly? No.

Unfortunately, the Phone does not have a battery that a user can replace. That means you have to send the iPhone to Apple to replace the battery after it's spent (Apple is estimating one battery will last for 400 charges--probably about two years' worth of use). No, you don't really need a removable battery in a cell phone, but like many things missing on the iPhone, it would be nice to have, especially for such an expensive phone. Contrary to earlier reports, the SIM card is removable via a small drawer on the top of the iPhone, but the iPhone's SIM card will not work in other AT&T phones. That's especially troubling, as it completely defeats the biggest advantage of using a GSM phone with a SIM card. Some people have multiple phones and like to change the SIM card between their different handsets. Also, you can't use the SIM card to import contact information from another handset.

Features
The iPhone's phone book is limited only by the phone's available memory. Each contact holds eight phone numbers; e-mail, Web site, and street addresses; a job title and department; a nickname; a birthday; and notes. You can't save callers to groups, but you can store your preferred friends to a favorites menu for easy access. You can assign contacts a photo for caller ID and assign them one of 25 polyphonic ringtones. We should note, however, that there's no voice dialing and you can't use MP3 files as ringtones. Other basic features include an alarm clock, a calculator, a world clock, a stopwatch, a timer and a notepad. There's a vibrate mode but it's a tad light.

The calendar offers day and month views, and you can use the calendar as an event reminder or a to-do list as well. The interface is clean and simple, though inputting new appointments involves a lot of tapping. There's no Week view, however. We were able to sync our Outlook contacts and calendar and our Yahoo! e-mail address book with no problems.

Bluetooth and wireless
The iPhone offers a full range of wireless functionality with support for Wi-Fi and Bluetooth connectivity. The Wi-Fi compatibility is especially welcome, and a feature that's absent on far too many smart phones. When you're browsing the Web, the iPhone automatically searches for the nearest Internet hot spot. Bluetooth 2.0 is also on board, which delivers faster transmission and a longer range than Bluetooth 1.2. You can use Bluetooth for voice calls, but you don't get an A2dP stereo Bluetooth profile--another item that's not necessary but would be nice to have.

Though Apple CEO Steve Jobs has explained the iPhone's lack of 3G support by saying the chipsets take up too much room and drain too much battery, we'd like the option anyway. Yes, the Wi-Fi network is great when you can get it, but AT&T's EDGE network just doesn't cut it for all other surfing. EDGE Web browsing is so slow, it almost ruins the pretty Web interface. More on this in the Performance section.

Messaging and e-mail
For your messaging needs, the iPhone offers text messaging and e-mail. As on many smart phones, a text message thread is displayed as one long conversation--a useful arrangement that allows you to pick which messages you'd like to answer. If you use another function while messaging, you can return to pick up that message where you left off. We just don't understand, however, why Apple doesn't include multimedia messaging. Sure, you can use e-mail to send photos, but without multimedia messaging you can't send photos to other cell phones--pretty much the entire point of a camera phone.

The iPhone's e-mail menu includes integrated support for Yahoo, Gmail, AOL, and Mac accounts. You can set up the phone to receive messages from other IMAP4 and POP3 systems, but you'll need to sweet-talk your IT department into syncing with your corporate exchange server. It's rumored that Apple will update the iPhone to support ActiveSync but Apple hasn't confirmed that as of this writing. You can read--but not edit--PDF, JPEG, Word, and Excel documents. Worse: you can't cut and paste text when composing messages.

iPhone's iPod
Sandwiched between all the iPhone's features lives Apple's most amazing iPod yet. The display, interface, video quality, audio quality--all of it is meticulously refined and beautiful. Unfortunately, it's trapped within a device that will cost you more than $1,000 a year just to own. Quality Nepal recently reviewed a Rolls-Royce that had a top-notch umbrella hidden inside its passenger door. Buying the iPhone for its iPod feature is a lot like buying that Rolls-Royce for its umbrella. Regardless, the iPhone is an exciting glimpse into what Apple hopefully has planned for its sixth-generation iPod. Apple has redeemed itself following the Motorola Rokr E1 debacle.